19 May 2014 07:00
19 May 2014
Circle Oil Plc
("Circle" or the "Company")
Operating Update Morocco
Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following operating update.
Sebou and Lalla Mimouna Permits
The third drilling campaign in the Sebou permit and first campaign in the Lalla Mimouna permit has commenced with the spud of the SAH-W1 well in the Sebou permit.
The work programme initially includes the drilling of three wells in the Sebou permit followed by drilling in the Lalla Mimouna permit. In all, it is planned to drill 12 separate targets and although these have been chosen and approved internally the final locations of some wells may be amended in the light of drilling results. There is a large portfolio of prospects from which to choose, if alternative locations are required.
The 12 locations initially chosen are targeting resources of approximately GIIP of 25 bcf and the first well, SAH-W1, is targeting a dipping three way fault bounded sand lens with TD at 1,225 metres MD and primary targets in the Guebbas Formation at 1,060 and 1,160 metres MD. The Company's pre-drill estimates are for GIIP of 1.85 bcf and 1.0 bcf respectively for the two targets.
It is anticipated that the drilling campaign will, at times, employ multiple drilling rigs in order to progress the campaign and provide as much continuous progress as possible.
Both the Sebou and Lalla Mimouna permits are a partnership between Circle Oil Morocco Ltd (75%) and ONHYM (Office Nationale de Hydrocarbures et des Mines) (25%).
The concession agreements include the right of conversion to a production licence in the event of commercial discoveries.
Production in Sebou has continued throughout H1 2014 at 6.8 - 7 MMscf/d gross.
Prof Chris Green, CEO, said:
"Circle is very pleased to announce the start of our third drilling campaign in Morocco. We have previously enjoyed significant drilling success in the Sebou permit and our technical team have worked hard to maximise opportunities and ensure this success continues. Reserve replacement and enhancement is the key to maintaining and uplifting our revenues in what we regard as a core country to invest in for the future. We sincerely thank our partner ONHYM for their continuing support and assistance as we start this third drilling campaign."
Glossary
bcf | Billion cubic feet |
GIIP | Gas initially in Place |
MD | Measured Depth |
MMscf/d | Millions of standard cubic feet of gas per day |
TD | Target Depth |
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Stuart Harker, VP Geology, with over 40 years' experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement.
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Investec (+44 20 7597 5970)Chris SimGeorge Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)Simon Atkinson
Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonShabnam Bashir
Murray Consultants (+353 1 498 0320)Joe MurrayJoe Heron
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, Oman, 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 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 licensed acreage of any company in Oman. In addition to its prospective Block 52 offshore, Circle 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 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.