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27 Aug 2008 13:05
27 August 2008
CIRCLE OIL PLC
("Circle" or the "Company")
Production to Commence in Morocco
Circle Oil Plc, the international oil and gas exploration and development company, is pleased to announce that it has completed the acquisition of a 60% interest in the Oulad N'Zala Permit in the Rharb Basin, Morocco. Office Nationale des Hydrocarbures et des Mines ("ONHYM") holds 40% of the permit. This permit contains the ONZ4 gas discovery well, which has now been tied into the local gas infrastructure.
Following a meeting of the partners it has been agreed that Circle is scheduled to commence production from the ONZ4 well on 15 September 2008.
David Hough, CEO of Circle, said:
"The signing of the Oulad N'Zala permit and ONZ4 production commencement agreement marks the beginning of revenues for Circle. This is a significant event for the Company and I believe a foretaste of the future as Circle expands its production in Morocco and other areas. I must thank all concerned who have worked hard to get Circle to this important stage in its development."
For further information contact:
Circle Oil plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden
James Cassley
Fox-Davies Capital (+44 207 936 5230)
Richard Hail
Citigate Dewe Rogerson (+44 20 7638 9571)
Media enquiries: Martin Jackson
Analyst enquiries: George Cazenove
Notes for Editors
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and development Company with an expanding portfolio of assets in Morocco, Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term production and significant exploration upside potential. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; the Zeit Bay area of Egypt and the Owambo Basin, Namibia. Circle also has the largest licence holding of any Company in Oman. In addition to its highly prospective Block 52 offshore, the Company also has an ongoing exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses 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 itself 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 Oil is available on its website - www.circleoil.net
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