Operating Update Egypt (0565H)
May 23 2011 - 2:00AM
UK Regulatory
TIDMCOP
RNS Number : 0565H
Circle Oil PLC
23 May 2011
23 May 2011
CIRCLE OIL PLC
("Circle" or the "Company")
Operating Update Egypt
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce an update regarding the Geyad-3 appraisal/development well
together with details on the future development of the NW Gemsa
Concession.
Geyad-3C Update
Geyad-3, located to the south-east of the Geyad-1X ST well in
the Geyad Development Lease, was drilled to 5,635 ft MD in the
Upper Rudeis. The main objective for this well was to appraise and
bring into production the oil bearing Shagar and Rahmi sandstones
of the Kareem Formation. The Shagar sands were encountered from
5,333 to 5,347 ft MD with 14 ft of net oil pay.
Circle is delighted to announce that the Shagar interval was
tested at a sustained rate of 1,316 bopd and 1.26 MMscf/d of gas on
a 24/64" choke and the well will be completed for production. The
underlying Rahmi sands were encountered but found to be of poor
reservoir quality and were not tested. A secondary objective of the
Belayim sands in Geyad-3 well was also encountered with 5 ft of
calculated net pay, but it was decided not to test this interval at
the present time.
The Geyad-3 well has proved up the South East extension of the
field and added further confirmation of the field geometry. The
next well proposed for the Geyad field is a westerly peripheral
injector to be drilled later in 2011.
The well is currently rigging down and the rig is preparing to
mobilise to drill the injector well Al Amir SE-8X, located on the
South West flank of the Al Amir SE field.
The NW Gemsa Concession, containing the Al Amir and Geyad
Development Leases, covering an area of over 260 square kilometres,
lies about 300 kilometres southeast of Cairo in a partially
unexplored area of the Gulf of Suez Basin. The concession agreement
includes the right of conversion to a production licence of 20
years, plus extensions, in the event of commercial discoveries. The
NW Gemsa Concession partners include: Vegas Oil and Gas (50%
interest and operator); Circle Oil Plc (40% interest); and Sea
Dragon Energy (10% interest).
Prof Chris Green, CEO, said
"I am pleased to report another successful result as the
partnership's plans in NW Gemsa remain on schedule. The rig now
moves to start drilling the second injector well on Al Amir SE as
part of the development plan to increase production rates for the
medium and long term."
Glossary
MD Measured Depth
ft Feet
bopd Barrels of oil per day
MMscf/d Million standard cubic feet per day
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, and Dr Stuart
Harker, VP Geology, also with over 30 years experience, are the
qualified persons 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. Professor Green and Dr Harker have relied on primary
information supplied by the operator in carrying out their
review.
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 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 and the Zeit Bay area of Egypt. Circle also has the largest
licence holding of any company in Oman. In addition to its
prospective Block 52 offshore, Circle also has an ongoing
exploration program in Block 49 onshore.
Circle'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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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