13 Oct 2015 07:00
13 October 2015
Circle Oil plc
("Circle Oil" or the "Company")
Operating Update Morocco
Circle Oil plc (AIM: COP), the North African focused oil and gas exploration, development and production company, is pleased to provide an update on the progress of the Ksiri West-A (KSR-A) exploration well on the Sebou Permit, onshore Morocco.
The KSR-A well, located within the Ksiri Central production concession of the Sebou permit, reached a TD of 1,890 metres MD on 19 September 2015. Prospective gas zones were logged, and a completion string installed in preparation for well testing and then connection to existing production facilities.
The KSR-A well has been tested using a slick-line unit following the release of the rig. The primary Main Hoot target interval was perforated from 1,817.9 to 1,826.7 metres MD and flowed gas at a maximum rate of 8.0MMscf/d on a 24/64" choke.
The well will be tied back to the 75% owned Circle Oil pipeline from Sebou to the industrial area of Kenitra ready for production. The well is approximately 680m to the west of KSR-11, for production line tie-back, and 1.12km west of the Ksiri sub-station. The production concession has validity through 2024.
The rig has now relocated to drill the Caid El Gaddari-13 (CGD-13) well, the final well of Circle's current drilling campaign. The location lies within the Gaddari Sud exploitation concession near the southwestern margin of the Sebou Permit. This well has a primary target at 780 metres MD and a prognosed TD at 867 metres MD. The target consists of gas-bearing Miocene sandstones in a structurally elevated position east of the CGD-1 well and west of the CGD-9 well. Depending on progress rates, initial results could be available in approximately 30 to 40 days.
Commenting on the results of the KSR-A well Mitch Flegg, CEO, said:
"We are delighted with the results of the KSR-A well. The flow rates achieved during the well test are at the upper end of our range of expectations and the well will now be tied in to our existing infrastructure and put into production as soon as possible. This gas will be sold at fixed rates which are not subject to oil price fluctuations."
The Sebou permit is a partnership between Circle Oil Maroc Limited (75%) and ONHYM (Office National des Hydrocarbures et des Mines) (25%).
Glossary
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TD MD MMscf/d | Total Depth Measured Depth Million Standard Cubic Feet per Day
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For further information contact:
Circle Oil plc (+44 20 7148 1799)
Mitch Flegg, Chief Executive Officer
Investec (+44 20 7597 4000)Chris SimGeorge Price
James Rudd
Murray Consultants (+353 1 498 0300)Joe Heron (+353 87 6909735)
Pat Walsh
In accordance with the guidelines of the AIM Market of the London Stock Exchange the technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Executive Officer of Circle Oil plc. Mitch Flegg, who has over 34 years of experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies,
Mitch Flegg holds a BSc in Physics from Birmingham University and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).
Notes to Editors
Circle Oil plc (AIM: COP) is an international oil & gas exploration, development and production company holding a portfolio of assets in Morocco, Tunisia, and Egypt with a combination of low-risk, near-term production, and significant upside exploration potential. The Company listed on AIM in October 2004.
Internationally, the Company has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW Gemsa permit in Zeit Bay area of Egypt.
Circle Oil'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 Oil may 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 at www.circleoil.net.