Circle Oil Plc Regulatory News (COP)

18 June 2014

Circle Oil Plc

("Circle" or the "Company")

Operating Update Morocco

Morocco Sebou Permit - Exploration Well SAH-W1

Circle Oil Plc (AIM: COP), the Middle East and Africa focused oil and gas exploration, development and production company, is pleased to announce the preliminary results of drilling of the well SAH-W1 in the Sebou Permit, onshore Morocco.

The well is located within the western central area of the Sebou Permit, about 3.2 kilometres to the south west of the main gas gathering station. The well was spud on 19 May and drilled to a TD of 1,263 metres MD. Gas shows were encountered at three levels within the target Guebbas sands, but seven inch casing had to be installed (due to mechanical problems) before drilling a six inch hole through the main target interval. The wireline logging confirmed the presence of three gas-bearing zones, and subsequent pressure testing in the six inch hole confirmed permeable high pressure reservoirs.

The rig has been released from this site before running the 4.5 inch liner as this is a non-standard size for drilling these wells and this is being sourced to test and complete the well for production in the future. The net pay from wireline log analysis is 6 metres in the Top Guebbas, 6 metres in the main target Intra Guebbas and 3 metres in the lower part of the Intra Guebbas. The plan is to produce the three zones sequentially from the bottom up, where the highest pressure is present.

Further updates will be provided in due course.

Commenting on the results of the SAH-W1 well Prof. Chris Green, CEO, said:

"We are delighted to add another successful discovery to our Sebou gas portfolio. This is the first well of a six well programme to be drilled with our partner ONHYM in the Sebou permit and is coupled with another six well programme in the Lalla Mimouna permit."

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

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. Dr. Harker holds a BSc (Hons) in Geology from the University of London (UK) and an MSc and PhD from the University of Saskatchewan, Canada. He is also a Fellow of the Geological Society of London and a Chartered Geologist.

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.