COP Circle Oil

TIDMCOP

RNS Number : 9953E

Circle Oil PLC

15 April 2011

15 April 2011

Circle Oil Plc

("Circle" or the "Company")

Drilling Update Morocco

Further Gas Discovery

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce that the KSR-11 exploration well has been drilled, logged and successfully tested in the Sebou Permit, Rharb Basin, Morocco.

The Company confirms a gas discovery in the Main Intra Hoot target and secondary targets available for future testing in the Mid and Base Guebbas sands. The well tested gas at a sustained rate of 4.0 mmscf/d on a 16/64" choke from the Intra Hoot. The perforated Intra Hoot zone of 17.9 metres at 1,761.2-1,779.1 metres MD has a calculated net gas pay of 11.6 metres.

The Base Guebbas zone of 37.7 metres at 1,636.0-1,673.7 metres MD has a calculated net gas pay of 5.5 metres. The Mid Guebbas zone of 22.8 metres at 1,464.1-1,486.9 metres MD has a calculated net gas pay of 4.1 metres. The Guebbas Zones will be tested at a later date following production and depletion of the Intra Hoot producing zone.

The well is being completed as a potential producer.

A full technical evaluation of all the results of the well is underway. This will allow for future planning as a precursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves.

The drilling rig is now being demobilised to end the 2010-2011 drilling campaign. Work is underway for consolidation of the results of this campaign together with planning for the next drilling campaign. The preparations for Circle's third Moroccan drilling campaign include the acquisition of a new 3D seismic survey over areas of Circle's permits not previously covered by 3D seismic.

In parallel, recent engineering testing of underground crossings of public transport infrastructure have been successfully completed as part of the construction preparation for the new 8-inch pipeline. Work on the pipeline is progressing in line with management's expectations.

The Sebou permit lies to the north-east of Rabat in the Rharb Basin in Morocco. The Rharb Basin is a foredeep basin located in the external zone of the Rif Folded belt. The concession agreement, in which Circle has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production licence of 25 years, plus extensions in the event of commercial discoveries.

Prof. Chris Green, CEO, said:

"I am very pleased to be able to report that we have yet again continued our drilling success in Morocco's Rharb Basin. The KSR-11 well has been completed and, when required, will be available for future production. We tested this well at a small restricted choke size and it still achieved a good flow rate with very quick pressure build up. The second drilling campaign has been very successful and we have increased our ability to both supply gas and incrementally increase our resources in line with the business plan for the area. Everyone has worked hard to achieve this result and it is definitely appropriate to thank staff and our service companies for their efforts and also to thank ONHYM for their continuing support to our endeavours."

Glossary

mmscf/d millions of standard cubic feet per day

MD Measured Depth

ONHYM Office National des Hydrocarbures et des Mines

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Professor Chris Green, Chief Executive Officer of Circle Oil Plc, an explorationist and geophysicist with over thirty years oil & gas industry experience, is a 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.

For further information contact:

Circle Oil Plc (+44 20 7638 9571) Professor Chris Green, CEO

Evolution Securities (+44 20 7071 4300) Chris Sim Neil Elliot

Fox-Davies Capital (+44 20 7936 5230) Daniel Fox-Davies

Philip Davies

David Porter

Citigate Dewe Rogerson (+44 20 7638 9571) Martin Jackson George Cazenove

Murray Consultants (+353 1 498 0300) Joe Murray Joe Heron

Notes to Editors

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 and Egypt, with a combination of producing, low-risk near-term production and acreage with significant upside exploration 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; and the Zeit Bay area of Egypt. Circle also has the largest licence holding of any Company in Oman. In addition to offshore Block 52, the Company also has an ongoing exploration program in Block 49 onshore.

The Company'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. Circle may use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment. In addition it may seek farm-outs to selected partners who would then invest in the exploration and continue through to the development of the assets for production.

Further information on Circle is available on its website at www.circleoil.net.

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLDMGMDRKMGMZG

Circle Oil (LSE:COP)
Historical Stock Chart
From Jun 2024 to Jul 2024

Circle Oil (LSE:COP)
Historical Stock Chart
From Jul 2023 to Jul 2024