TIDMCOP
RNS Number : 5854N
Circle Oil PLC
05 September 2011
5 September 2011
Circle Oil Plc
("Circle" or the "Company")
Operational Update Oman
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company is pleased to
announce the following operational update on its activities in
Blocks 49 and 52 in Oman.
Block 49
Circle is pleased to confirm that the Ministry of Oil and Gas,
Oman has granted an extension to the exploration period for our
onshore Block 49 now ending 26 December 2012. Within this time
frame, Circle will be required to complete an additional 2,500 line
kilometresof closely spaced 2D seismic survey and drill one
exploration well. The seismic programme is to be acquired in the
south-eastern part of the permit, north-east of and adjacent to the
3D survey which was completed in 2010. This survey is intended to
provide a better understanding of the whole southern permit area,
and outline potential additional drilling targets. It will
complement the existing dataset, and cover an area with sparse
coverage of legacy 2D lines. Acquisition parameters for the survey
will draw on the experience obtained during the acquisition and
processing of the 3D survey.
Block 49, covering an area of over 15,438 square kilometres,
lies about 700 kilometres south-west of Muscat in a relatively
unexplored area of Southern Oman. The concession agreement includes
the right of conversion to a production licence of 30 years in the
event of commercial discoveries. Circle Oil Oman Ltd is the
operator of Block 49 with a 100% working interest.
Block 52
The processing of the 5,026 line kilometres of marine 2D
seismic, recorded from December 2010 to February 2011, has been
completed. The processed data received to date are of a
significantly improved quality over the historic seismic data.
Interpretations have confirmed the presence of multiple structures
and potential targets for exploration drilling. As result a
farm-out process has recently been initiated using both internal
data rooms and an external agency. The farm-out process is aimed at
seeking a partner(s) to drill a commitment well in Block 52 within
the next 18 months.
Circle's interpretations detailed in the farmout package in
Block 52 have identified several promising play types in
stratigraphy ranging in age from Pre-Cambrian to Tertiary, but the
offshore Outer Sawquirah Area of Late Cretaceous to Palaeogene
structural closures is considered the most prospective.
The identified principal reservoir intervals are Palaeogene
Hadhramaut carbonates and clastics and late Cretaceous Aruma Group
carbonates. Potential source rocks are considered to be Lower
Hadhramaut and Aruma shales with additional potential in the
basinal Jurassic Sahtan Group and the Infra-Cambrian Huqf Super
Group. Sealing units for potential traps are provided by extensive
shale units of the Fars, Hadhramaut and Aruma groups.
Nine large four way dip closed prospects are recognised in the
Outer Sawqirah Area. Internal pre-drill deterministic STOIIP of
these nine prospects for the most likely unrisked case is
calculated as 7,264 MMBO. The associated ultimate recoverable
resources for the nine prospects are estimated internally as 2,179
MMBO.
The water depths for proposed drilling locations on the nine
prospects range from 724 to 956 m and target depths range from
1,490 to 2,850 m. The largest individual prospect, presently
designated as Prospect A1, is situated in a water depth of
approximately 769 m, with an internally estimated deterministic
most likely STOIIP of 2,435 MMBO and associated most likely
ultimate recoverable resources of 731 MMBO, with depth to top
target at 1,490 m.
The Company would emphasize the point that the pre-drill
deterministic estimates of STOIIP and resources are based on the
information and interpretations available at time of issue and are
made based on Circle's management deterministic best estimates.
There can be no assurance that such estimates will prove to be
accurate as future technical evaluations and results, including
drilling results, could lead to variations or differ materially
from those indicated in this release.
As expected, further exploration work is necessary and the
Company is now seeking partners to join in this effort. Further
announcements will be made in due course.
Block 52, covering an area of over 63,460 square kilometres,
lies about 500 kilometres SSW of Muscat in an underexplored area of
offshore Southern Oman. The concession agreement includes the right
of conversion to a production licence of 30 years in the event of
commercial discoveries. Circle Oil Oman Offshore Ltd is the
operator of Block 52 with a 100% working interest.
Commenting Prof. Chris Green, CEO, said:
"The granting of the extension for Block 49 will allow Circle to
further evaluate drilling opportunities within the southern area of
the permit. In Block 52, the new seismic is of excellent quality
and multiple closures, including some leads we mapped previously,
have been firmed up as prospects. The interpretations coming from
Block 52 seismic have allowed us to prepare a comprehensive
farm-out package."
Glossary
2D Two dimensional
3D Three dimensional
m metres
MMBO Millions of barrels of oil
STOIIP Stock tank oil initially in place
SSW South south west
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 have
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 3463 5010) Daniel Fox-Davies
Richard Hail
Citigate Dewe Rogerson (+44 20 7638 9571) Martin Jackson Kate
Lehane
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 two 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, the Company also has an ongoing
exploration programme 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
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