Circle Oil Plc Regulatory News (COP)

1 November 2012

Circle Oil Plc 

("Circle" or the "Company")

Operating Update Tunisia

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following update regarding operations in its Grombalia Permit.

The Bou Argoub-1 (BAB-1) exploration well in the South West Belli area of the Grombalia Permit, near to the Belli, El Manzah, and Beni Khaled fields has spudded and commenced drilling on 30 October 2012.

The BAB-1 well has an expected total depth of 1,350 metres and is targeting a fault-bounded structural culmination crossing two vertically stacked fractured carbonate reservoirs, the Eocene Bou Dabbous Formation and the Late Cretaceous Abiod Formation. These are the main oil-producing formations in the north-eastern part of Tunisia.

Following completion of the BAB-1 well, the rig will move south to the Ras Marmour Permit in preparation to drill the Sedouikch commitment exploration well. This well has an expected total depth of 2,350metres and is targeting the Early Cretaceous Lower Meloussi sands, productive in the nearby Robanna and Mazrane Fields.

Further updates will be made in due course.

The Grombalia Permit covers an area of 2,792 square kilometres. The partners include Exxoil Tunisie Ltd (64% working interest and operator) and Circle (36% working interest).

The Ras Marmour Permit covers an area of 1,604 square kilometres. The partners include Exxoil Tunisie Ltd (77% working interest and operator) and Circle (23% working interest).

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Stuart Harker, VP Geology, with over 30 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 has relied on primary information supplied by the operator in conducting his review.

For further information contact: 

Circle Oil Plc (+44 20 7638 9571)

Professor Chris Green, CEO

Investec (+44 20 7597 5970)Chris SimNeil Elliot

Liberum Capital Limited (+44 20 3100 2222)Simon Atkinson

Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonJack Rich

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; the Grombalia Permit in northern 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.