Operating Update Egypt (0437X)
February 08 2012 - 9:00AM
UK Regulatory
TIDMCOP
RNS Number : 0437X
Circle Oil PLC
08 February 2012
8 February 2012
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
("AASE") and the Geyad field.
AASE-10X Well
AASE-10X was spudded on 13 December 2011 and is located on the
central western flank of the AASE field, downdip of the AASE-4X
producer. The well's objective was to appraise both the Shagar and
Rahmi sands for injection/production in that location. The well was
successfully drilled to a total depth of 10,450 ft MD into the
Upper Rudeis Formation. The well encountered 34 ft of net pay in
the Kareem Shagar sand and 31 ft in the underlying Rahmi sand with
oil bearing sands present to the base of the reservoir. The Rahmi
zone was perforated from 9,975 to 10,010 ft MD and testing is
planned to be conducted shortly. The results will be announced in
due course.
Following its productive lifespan, the Rahmi sands will be used
for water injection. This injection will be targeted principally to
support the Rahmi production from the nearby updip AASE-4X
well.
AASE-11X Well
Following the successful completion of the AASE-10X well, the
rig was mobilised to drill the appraisal well AASE-11X, located in
the north western flank of the AASE field. The well was spudded on
5 February 2012 and has reached a depth of 1,783 ft (13 3/8" casing
point). It is planned that the well will appraise both the Shagar
and Rahmi sands for production in that location.
Production
Production from the Al Amir SE and Geyad fields averaged
approximately 7,025 bopd (gross) through December 2011. Cumulative
production from the NW Gemsa Concession has now exceeded 7 million
barrels of 42 degree API Crude oil.
Water Injection
Pressure support in response to water injection in the AASE-7X
and AASE-8X wells has now been observed in the nearby producers of
AASE-6X Shagar and the AASE -4X Rahmi wells. Water injection has
also commenced in the Geyad field through the Geyad-5 well.
Cumulative injection to date is 1.39 million barrels at a current
rate of about 11,700 bwpd in AASE-7X and AASE-8X and 5,300 bwpd in
Geyad-5, with all three wells injecting into both Shagar and Rahmi
reservoirs.
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 success of the AASE-10X well in finding good reservoir
sands, oil bearing in both the Shagar and Rahmi sands, is an
excellent result. Subject to successful testing and completion the
well is presently planned to first produce from the Rahmi and then
later be converted to a water injector to support the AASE-4X
production.. The rig has moved and has started drilling well
AASE-11X which is intended as a producer for the AASE 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
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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