29 Jul 2013 07:00
29 July 2013
CIRCLE OIL PLC
("Circle" or the "Company")
Operating Update Tunisia
Offshore Mahdia Exploration Concession
Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following update regarding its operations in Tunisia.
Circle Oil Tunisia Limited ( "Circle Tunisia"), a wholly owned subsidiary of the Company, has reached agreement with Tethys Oil and Mining Inc ("Tethys") to acquire the remaining 30% working interest in the offshore Mahdia exploration licence area in Tunisia (the "Licence").
Under the terms of the agreement Circle Tunisia will, subject to the approval of the Tunisian authorities, acquire the remaining 30% interest in the Licence in return for a payment of US$3 million payable in two separate tranches. The acquisition will be funded from Circle's existing cash flow and internal resources. Following completion of the terms of the agreement, Circle Tunisia, will hold a 100% working interest in the Licence.
The Licence, which was recently the subject of a 3D marine seismic survey, contains multiple prospects and leads, the first two of which are designated the El Medouini prospect and the West El Medouini prospect. Circle's management estimates, which have been validated by independent third party consultants, indicate that these two prospects contain 125 MMBO and 55 MMBO unrisked most likely STOOIP resources respectively.
The Licence has a work commitment to drill one well before July 19, 2014. The recent 3D marine survey was aimed at confirming the final choice of target for the commitment well and also to provide the necessary data to facilitate entry into future phases of exploration and undertake any resultant commitments within the Licence area.
Prof Chris Green, CEO Circle, said:
"We are pleased to announce this acquisition which increases our working interest to 100% in this prospective offshore permit and is another step in strengthening our portfolio. The increased interest provides us with greater flexibility for progressing this permit, and maximising value in the event of a successful well."
Glossary
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MMBO | Million barrels of oil |
STOOIP | Stock Tank Oil Originally In Place |
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Professor Chris Green, Chief Executive Officer of Circle Oil Plc, an explorationist and geophysicist with over thirty years oil & gas industry experience, and Dr Stuart Harker, VP Geology, also with over 30 years' experience, are the qualified persons as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who have reviewed and approved the technical information contained in this announcement. Professor Green and Dr Harker have relied on primary information supplied by both the operator and Circle in carrying out their review.
For further information contact:
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Circle Oil Plc Professor Chris Green, CEO
| (+44 20 7638 9571) |
Investec Chris Sim George Price James Rudd
| (+44 20 7597 5970) |
Liberum Capital Limited Simon Atkinson
| (+44 20 3100 2222) |
Citigate Dewe Rogerson Martin Jackson Jack Rich
| (+44 20 7638 9571) |
Murray Consultants Joe Murray Joe Heron
| (+353 1 498 0300) |
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production Company with an expanding portfolio of assets in Morocco, Tunisia, Oman and Egypt with a combination of low-risk near-term production and significant exploration upside potential. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past years and now has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia and the Zeit Bay area of Egypt. Circle also has the largest licence holding of any company in Oman. In addition to its prospective Block 52 offshore, Circle also has an ongoing exploration programme in Block 49 onshore.
Circle's strategy is to locate and secure additional licences 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 is available on its website at www.circleoil.net.