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15 Apr 2009 07:00
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15Β April 2009
CIRCLEΒ OILΒ PLC
("Circle" or the "Company")
MOROCCOΒ UPDATE
Circle Oil plc (AIM:COP), the international oil and gas exploration and production company,Β is pleased toΒ announce thatΒ drilling and tie in operationsΒ in its SebouΒ and Oulad N'ZalaΒ licencesΒ in the Rharb Basin, MoroccoΒ are now back on trackΒ with the spudding of the DRJ-6 wellΒ in the Sebou permitΒ in the past few days.Β As previously announced, these operations were delayed due to veryΒ severe flooding in the area over the past months.
Circle isΒ also pleased to announce that itsΒ gas discovery ONZ-6Β in the Oulad N'Zala permitΒ has been tied in to the local pipeline infrastructure and is producing gas by way ofΒ a revenue earningΒ extended well test. This shouldΒ leadΒ into continuous productionΒ and allowΒ a fuller assessment ofΒ reserves.Β
Road access and platform construction are underway on the final two locations of the Company'sΒ sixΒ well programmeΒ andΒ workΒ on the tieΒ inΒ forΒ the CGD-9 and KSR-8Β wellsΒ is progressing.
Commenting on this news, David Hough,Β CEO of Circle said:
"Following the abnormally high rainfall of the past winterΒ there wasΒ serious flooding over the whole of theΒ RharbΒ BasinΒ andΒ we had no alternative but toΒ delay some of theseΒ operations.Β However the flood waters have now subsided and operationsΒ haveΒ recommenced with the spudding ofΒ theΒ DRJ-6Β wellΒ and the tie in ofΒ theΒ ONZ-6Β discovery. The tie in of ONZ-6Β enablesΒ Circle to increaseΒ its gas output from the licenceΒ therebyΒ immediatelyΒ increasingΒ our revenues from the area."
For further information contact:
Circle Oil plcΒ (+44 20 7638 9571)
David Hough, CEOΒ
Collins Stewart Europe LimitedΒ (+44Β 20 7523 8350)
Adrian Hadden
Fox-Davies CapitalΒ (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe RogersonΒ (+44 20 7638 9571)
George Cazenove
Notes to Editors
Circle Oil Plc
Circle Oil Plc (AIM:Β COP) is an international oil &Β gas exploration and productionΒ Company with an expanding portfolio of assets inΒ Morocco,Β Tunisia,Β Oman,Β EgyptΒ andΒ NamibiaΒ with a combination of low-risk near-term production and significant exploration upside potential. The Company listed onΒ AIMΒ in October 2004.Β
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in southernΒ Tunisia; the Mahdia Permit offshoreΒ Tunisia; the Grombalia Permit in northernΒ Tunisia; theΒ ZeitΒ BayΒ area ofΒ EgyptΒ and the Owambo Basin, Namibia. Circle also has the largestΒ licenceΒ holding of any Company inΒ 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 investmentΒ programmes,Β monetiseΒ 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 atΒ www.circleoil.netΒ
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