11 May 2015 07:00
11 May 2015
Circle Oil Plc
("Circle" or the "Company")
Operating Update Morocco
Morocco Sebou Permit - Discovery Exploration Well SAH-W1
Circle Oil Plc (AIM: COP), the Middle East and North Africa focused oil and gas exploration, development and production company, is pleased to announce the preliminary results of testing 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 drilled to a TD of 1,263 metres MD in June 2014, with gas shows encountered at different levels within the target Guebbas sands. As is normal practice, Circle will produce from the lowermost Guebbas zone followed by the Main Guebbas zone sequentially from the bottom up, where the highest pressure is present. The lowermost Guebbas zone has 3.6 metres of net pay and the test over this interval flowed at a sustained rate of 4.94 MMscf/d on a 24/64" choke during a period of 5 hours.
The rig has been released from SAH-W1 and is being transported to the Lalla Mimouna concession to drill Circle's first well on this permit, LAM-1. This will be the fifth well of the current drilling campaign and is located in the central part of Lalla Mimouna Nord on the east-west trending Anasba Ridge, within the existing 3D seismic area. The target of the LAM-1 well is for Miocene gas-bearing sands, similar to the Sebou discoveries made previously by Circle. The primary target sands are prognosed at a depth of 1,231 metres MD and the TD of the well at 1,521 metres MD. Further wells in Lalla Mimouna and Sebou permits will follow to complete the current programme.
Commenting on the results of the SAH-W1 well Steve Jenkins, Chairman, said:
"We are delighted with the results of the SAH-W1 well test. This was the first well of our third drilling campaign, drilled with our partner ONHYM in the Sebou permit and is coupled with our drilling programme in the Lalla Mimouna permit. We believe that this well has the potential to add significant volumes to our reserves for gas production and at rates not subject to price fluctuation due to fixed price contracts."
Glossary
| |
MD MMscf/d | Measured Depth Millions of standard cubic feet of gas per day |
TD | Total Depth |
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Steve Jenkins, Chairman
Investec (+44 20 7597 5970)Chris SimGeorge Price
James Rudd
Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonShabnam Bashir
Murray Consultants (+353 1 498 0320)Joe Heron
Pat Walsh
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.