Circle Oil Plc Regulatory News (COP)

19 Oct 2006 11:03

Circle Oil PLC19 October 2006 CIRCLE OIL PLC ("Circle" or the "Company") STATEMENT REGARDING SHARE PRICE Circle Oil plc (AIM: COP), the international oil & gas exploration, developmentand production company with a growing portfolio of assets in Morocco, Namibia,Oman and Panama, today issued the following statement in respect of the recentfall in its share price. Circle knows of no reason for the fall in its share price and wishes to takethis opportunity to remind shareholders of some of the key points in theCompany's 2006 Interim Results announcement, published on 29 September 2006: - Acquisition, reprocessing and reinterpreting of available data for each of Circle's four existing licences in Oman, Namibia and Panama continues. Results to date give considerable encouragement in each of the areas. - The award of Sebou, a small but significant licence in the Rharb Basin, Morocco, is Circle's first success in its new evolving strategy of investing in more advanced projects. A low risk concession, Sebou, has potential for low cost, fast track development and production. - Circle also signed an agreement with ONHYM to participate in a two well programme for the Sebou area which has since resulted in a gas discovery, initial interpretation of which indicates it to be typical of those in the Rharb. Testing and evaluation of the results is ongoing. - At June 30, the Group had cash balances of €13.3 million (including €1.99 million of restricted cash) and no debt. Circle is progressing a number of other opportunities and will updateshareholders on these in due course. Enquiries (+44 20 7638 9571): Circle Oil plc (+44 20 7638 9571) David Hough, CEO Citigate Dewe Rogerson (+44 20 7638 9571) Media enquiries: Martin Jackson Analyst enquiries: Nina Soon Also www.circleoil.com Note to Editors Circle Oil is an international oil and gas exploration company with existinglicence operations in Oman, Namibia, Morocco and Panama. Its strategy is tolocate and secure licences and through targeted investment programmes, monetisethe value in those assets for the benefit of shareholders. This will beachieved through farm-outs to selected partners who can then invest in andcontinue the development of the asset into production. In low risk, near-termprojects Circle may itself opt to use its own expertise to appraise reserves andbring assets into production, generating long term cash flow for furtherinvestment. The company listed on AIM in October 2004. This information is provided by RNS The company news service from the London Stock Exchange