15 Jan 2010 07:00
15 January 2010
CIRCLE OIL PLC
("Circle" or the "Company")
Operational Update
Well KSR-8, Sebou Permit, Morocco
Circle Oil plc, (AIM :COP), the international oil and gas exploration, development and production company, is pleased to announce that the KSR-8 well, the most promising of the 2008/09 Moroccan drilling campaign in its Sebou Permit, has commenced extended test production. This follows the completion of engineering works and surface facilities construction.
As announced in our December 2009 operational update, following completion of furnace maintenance by our consumer in the first quarter 2010, production in the permit will increase to a range determined by the consumer's day to day requirements but will not exceed 2.5MMscfd until the planned new 6" gas trunkline capable of delivering 16.0MMscfd is installed. Engineering, planning and preparations for the new infrastructure continue. With the start of production from KSR-8 other producing wells in the area will be periodically shut in for pressure build up tests as part of technical evaluation.
In line with expectations, the prognosed winter rainfall and associated flooding in the Rharb Basin has occurred and work on the new drill sites has been temporarily curtailed. Civil engineering work and drilling will recommence when conditions permit.
David Hough, CEO Circle Oil, said:
"We are pleased to have KSR-8 in production which sets the stage to increase production significantly once the new trunkline is installed. The last year has been transformational for Circle and this new production starts 2010 on the right note with much to look forward to this year. I wish to thank those who have supported us during 2009 as Circle continues its growth in each of its operational areas."
Glossary
MMscfd - million standard cubic feet per day
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden
Fox-Davies Capital (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
Murray Consultants (+353 1 498 0320)
Joe Murray
Notes to Editors
Circle Oil Plc
Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production 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 Marmour 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 is available on its website at www.circleoil.net