17 Jun 2008 14:00
17 June 2008
CIRCLE OIL PLC
("Circle" or the "Company")
Oman Block 49 First Extension Granted
Circle has completed extensive reprocessing and interpretation of pre-existing seismic and gravity/magnetics data from the Block. The seismic and old well data have also been used as an aid to complete detailed 3D gravity modeling for the permit. The combination of the data sets has provided further evidence supporting our geological model which indicates the existence of a substantial salt basin in the southern half of Block 49. Stratigraphy and geological depositional history appear to be analogous to the South Oman Salt Basin.
In order to image any potential structures within the proposed salt basin and its flanks, Circle sought and has been granted permission to merge the two 2D seismic acquisitions for the original and first extension period into one larger 3D seismic acquisition. The acquisition of a closely sampled 3D seismic survey will allow imaging of any structures, such as salt stringers within the postulated salt basin. Historically it has been shown that these are not adequately imaged by 2D datasets. Imaging of the flanks of the basin is particularly important as these have also historically been shown to be important areas for hydrocarbon trapping.
The 3D survey will cover an area of approximately 900 square kilometers and subsequent processing and analysis will result in the development of any prospects for early drilling.
Commenting on the results David Hough, CEO of Circle Oil, said:
"The granting of this permission by the Omani Oil & Gas Ministry and movement to the first extension period is a major step in preparing the block for intensive seismic surveying and subsequent drilling. The work completed recently by our technical staff has further enhanced our belief in the prospectivity of the southern half of the permit. Neighboring wells continue to make substantial discoveries in analogous geological situations and we are very encouraged by these results. I would like to thank the Omani Ministry of Oil & Gas for their interest and support for our work and play concept, and for granting the extension to enable us to pursue this exciting area."
For further information contact:
Circle Oil plc
David Hough, CEO (+44 20 7638 9571)
Citigate Dewe Rogerson (+44 20 7638 9571)
Media enquiries: Martin Jackson
Analyst enquiries: George Cazenove
Collins Stewart Europe Limited (+44 20 7523 8350)
Chris Howard
Notes to Editors
Circle Oil
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and development company with a growing portfolio of assets in Egypt, Morocco, Tunisia, Namibia and Oman. The company listed on AIM in October 2004.
Circle has the largest licence holding of any company in Oman. In addition to Block 52, the company also has an ongoing exploration program in onshore Block 49. Worldwide, the company is active in exploration in the Owambo Basin, Namibia; in the Zeit Bay area of Egypt; the Rharb Basin, Morocco; the Ras Mamour Permit in southern Tunisia and Grombalia Permit in northern Tunisia.
The Company's strategy is to locate and secure licences in new 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 long term cash flow for further investment.
www.circleoil.net