15 Dec 2008 07:00
CIRCLE OIL PLC
("Circle" or the "Company")
Issue Of New Ordinary Shares
The Company has today made application for 11,052,632 ordinary shares of €0.01 each in the Company ("New Shares") to be admitted to the Alternative Investment Market of the London Stock Exchange ("AIM"). The New Shares have been issued to Windermere Finance S.A. in satisfaction of technical services and consultancy fees owed by the Company in relation to the introduction to and successful completion of negotiations undertaken on behalf of the Company, for the acquisition of a 70% share in the Mahdia Permit, in offshore Tunisia, as announced on 19 June 2008.
The Mahdia Permit covers an area of 3780 square kilometres and contains multiple mature undrilled prospects. It is situated in a proven oil province with a good track record of success and containing structures estimated to vary in size from 10-60 million barrels, in situ. This area has recently attracted significant investment from respected industry players and substantial sums have been paid to acquire licence interests in the surrounding area. Circle will commence its exploration activities in the Mahdia Permit in 1st quarter 2009.
The New Shares are expected to be admitted to trading on AIM on 19 December 2008. These New Shares will rank pari passu in all respects with the existing ordinary shares but may not be traded for a period of six months after issue without the prior written consent of the Company.
For further information contact:
Circle Oil plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden
Adam Cowen
Fox-Davies Capital (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
Notes to Editors
Circle Oil Plc
Circle Oil Plc (AIM: COP) is an international oil & gas company with an expanding portfolio of assets in the Middle East and North Africa, with a combination of low-risk production in Morocco and significant development and exploration upside potential in Morocco, Tunisia, Oman, Egypt and Namibia. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco including gas production; the Ras Mamour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; the Zeit Bay area of Egypt where it has had a recent oil discovery and the Owambo Basin, Namibia. Circle also has the largest licence holding of any Company in Oman. In addition to its highly prospective Block 52 offshore, the Company also has an ongoing exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses in prospective hydrocarbon provinces and through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may itself opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.
Further information on Circle Oil is available on its website - www.circleoil.net