14 Jul 2015 07:00
14 July 2015
Circle Oil Plc
("Circle" or the "Company")
Operating Update Morocco
Lalla Mimouna Permit - ANS-2 Well Update
Circle Oil Plc (AIM: COP), the North African focused oil and gas exploration, development and production company, provides the following information on the progress of the ANS-2 exploration well on the Lalla Mimouna permit, onshore Morocco.
ANS-2 was the second well drilled by Circle on the Lalla Mimouna permit, following the successful LAM-1 well. The ANS-2 well targeted the Miocene sands and the TD of the well, at 1,070 metres MD, was reached on 29 June 2015.
Although the well encountered gas shows whilst drilling at the targeted depth, the interpretation of wireline logs indicates that the reservoir quality encountered in the well has not met the Company's pre-drill estimates. Therefore the well has been suspended pending further analysis of all the data before a decision is made on whether or not to complete the well.
The rig is now being mobilised to drill the NFA-1 exploration well, the third well of our drilling campaign on Lalla Mimouna. The NFA-1 structure is located in the southern part of the Lalla Mimouna Nord Permit and is a downthrown location along the North-South trending Menadra fault in the south-eastern area of the Lalla Mimouna 3D survey. The well is targeting two potentially gas-bearing zones in the Miocene sands.
The targets exhibit strong seismic amplitude anomalies, attributed to gas filled porous sands, analogous to those proven by the successful drilling of similar features in the Sebou permit to the south. Depending on progress rates, initial results could be available in approximately 30-40 days.
Commenting on the results of the ANS-2 well Mitch Flegg, CEO, said:
"The ANS-2 exploration well has provided important data to help further our understanding of the Lalla Mimouna permit. We will now interpret this along with the results from the recent successful LAM-1 well test before we decide on whether to complete and test ANS-2. Meanwhile we look forward to the continuation of the drilling campaign in the Lalla Mimouna Nord and Sebou Blocks."
The Lalla Mimouna permit is a partnership between Circle Oil Morocco Ltd (75%) and ONHYM (Office National des Hydrocarbures et des Mines) (25%).
Glossary
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MD TD | Measured Depth Total Depth |
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Mitch Flegg, Chief Executive Officer
Investec (+44 20 7597 4000)Chris SimGeorge Price
James Rudd
Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonShabnam Bashir
Murray Consultants (+353 1 498 0300)Joe Heron
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 33 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'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.