TIDMCOP
RNS Number : 0722U
Circle Oil PLC
15 December 2011
15 December 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 the following update regarding the Al Amir SE Field Water
Injection project and the Geyad-4 well (formerly Geyad-D) in the
Geyad field.
Water Injection Al Amir SE Field
Water injection commenced successfully in the Al Amir SE field
(AASE) on 27 September 2011 in the AASE-7X well in the Shagar and
Rahmi sands and on 1 October 2011 in the AASE-8X well in the Rahmi
sand. The combined water injection rate is currently approximately
10,000 bwpd and as of 14 December 2011 some 712,000 barrels have
been injected.
Initial reservoir response to the water flooding operations has
now been observed in the first line of producers namely the AASE-6
Shagar well and the AASE-4 Rahmi well.
Geyad-4 Well (previously Geyad-D)
Geyad-4 was spudded on 26 October 2011 and is located on the
northern flank of the Geyad field, updip of the Geyad-2XST
producer. The well's objective was to appraise both the Shagar and
Rahmi sands for production in that location. The well was
successfully drilled to a total depth of 6,890 ft MD into the Upper
Rudeis Formation. The well encountered 2.5 ft of possible pay in
the shallow South Gharib heavy oil reservoir before encountering a
fault and was sidetracked twice to the southwest, closer to
Geyad-2XST.
The Rahmi zone was penetrated in the second sidetrack in
Geyad-4ST2, 100 ft higher than in the Geyad-2XST well, thus
allowing better access to the Rahmi oil reserves. The Rahmi zone
was perforated in the interval 6,340-6,395 ft and flowed oil and
gas on test at an average rate of 397 bopd and 0.76 MMscf/d
respectively, on a 24/64" choke. The Geyad-4ST2 well will be placed
on production soon. Water injection is planned to commence shortly
with the Geyad-5 well, drilled earlier this year, in the
southwestern part of the field.
Following the successful completion of the Geyad-4 well, the rig
has now been mobilised to drill the water injector well AASE-10,
located in the central western downdip flank of the Al Amir SE
field.The well is planned to appraise both the Shagar and Rahmi
sands for injection in that location.
Al Ola-2
The previously tested Al Ola-2 well remains shut-in at this time
as we await final Government approval for extending the Al Amir SE
Development Lease to the south and west of the current lease
boundary.
Production
Production from the Al Amir SE and Geyad fields averaged
approximately 7,300 bopd (gross) through November 2011. Cumulative
production from the NW Gemsa Concession has now exceeded 6.8
million barrels of 42 degree API Crude oil.
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
"The successful side tracking of Geyad-4 and the first
observation of a response to water injection in the Al Amir SE
field moves the project further forward in line with our
expectations and schedule. After just over two months of water
injection we are beginning to see a response in the first line of
producers. The rig has moved and is now spudding a well on the
AASE-10 location intended as another injector for the Al Amir SE
field as part of the overall plan to improve the productivity of
the NW Gemsa accumulations."
Glossary
bopd barrels of oil per day
bwpd barrels of water per day
ft Feet
MD Measured Depth
MMscf/d Millions of 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 have
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 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 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 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, Circle also has an ongoing
exploration programme in Block 49 onshore.
Circle'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. 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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