Circle Oil Plc Regulatory News (COP)

9 Jan 2008 13:39

Circle Oil PLC09 January 2008 09 January 2008 CIRCLE OIL PLC ("Circle" or the "Company") Zita-1 Well Test Grombalia Permit Prospect, Tunisia Agreed Circle Oil plc (AIM: COP), the international oil and gas exploration anddevelopment company, is pleased to announce that testing and analysis of theZita-1 exploration well in the Ras Marmour permit in Tunisia (23% workinginterest) has been completed. Zita-1, Ras Marmour Permit The testing of the dolomitic Zebbag formation from 1150m to 1163m and the Orbatadolomitic formation from 1357m to 1380m proved formation water similar to theadjacent Ezzouia field with oil shows but did not result in a flow of commercialmobile oil. Subsequent analysis of all data has suggested that the testingsampled the Zebbag formation just below the oil water contact. Following a review of the seismic and well data by all partners and theiradvisors, all partners have agreed to drill a curved sidetrack from the Zita-1well to target the Zebbag formation updip, thus drilling the maximum thicknessof the Zebbag and Orbata formation within the top crestal closure of theformation. The sidetrack will commence in approximately 3-4 weeks time onarrival of directional drilling equipment and engineers from Schlumberger whowill carry out the work. Upon completion, logs and testing will be run asnecessary. Grombalia Permit In a separate meeting Partners have approved the final location for the firstwell to be drilled in the Grombalia permit in northern Tunisia (36% workinginterest) together with its Environmental Impact Assessment and land approvals. Following completion of an upgraded interpretation using the 2007 seismicresults, a new location with lower risk analysis and larger closure area hasbeen prioritised. This new prospect, named Mellah, will be drilled before theoriginally intended location at Serdouk. The well will target the sameformations as those at Serdouk and the Serdouk well has been rescheduled fordrilling at a later date. The new interpretation has also firmed up a thirdprospect for future drilling. The civil preparation works for the well willcommence next week and the well spud for Mellah will follow the completion ofthe Zita sidetrack, presently estimated as being towards the end of the 1stquarter 2008. Commenting on the results David Hough CEO Circle Oil said: "It is disappointing that Zita-1 did not flow commercial mobile oil due to thehigh water saturations. However, it is encouraging that consensus on theanalysis of all the data retrieved from the seismic, drilling and logging putsus at or around the oil-water contact. We will now sidetrack updip to drill thewhole Zebbag and Orbata formation as soon as the specialist directional drillingequipment and engineers arrive from Schlumberger. "We are pleased that our partners have approved Mellah in the Grombalia Permitas the next well location and, with the civil works starting immediately, thesite will be ready for the rig to relocate to once the Zita-1 sidetrack iscomplete." In accordance with the guidelines of the AIM Market of the London StockExchange, Prof Chris Green (B.Sc.Hons. M.SC., PhD.),Technical Director CircleOil Plc, who has been involved in the oil industry for over 34 years, and Mr AliChine, Country Manager Circle Oil Tunisa Ltd who have been involved in theindustry for over 35 years are the qualified persons that have reviewed thetechnical information contained in this press release. For further information contact: Circle Oil plc David Hough, CEO (+44 20 7638 9571) Citigate Dewe Rogerson (+44 20 7638 9571) Media enquiries: Martin Jackson Analyst enquiries: George Cazenove Collins Stewart Europe Limited (+44 20 7523 8350) Chris Howard This information is provided by RNS The company news service from the London Stock Exchange