TIDMCOP
RNS Number : 2268Y
Circle Oil PLC
28 February 2012
28 February 2012
Circle Oil Plc
("Circle" or the "Company")
Updated CPR
Resources Upgraded to Reserve Status
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce that the 2012 Competent Persons Report (CPR) has recently
been completed by Bayphase Ltd, an independent consultancy
specialising in petroleum and gas reservoir evaluation, resulting
in a highly significant upgrade of 30% to the 2P recoverable
reserves of oil and gas from the 2011 estimates of ultimate
recoverable resources reflecting the success of the Company's
development activities throughout 2011.
2P Gross Initial Reserves for the Egyptian NW Gemsa and Moroccan
Sebou onshore concessions are estimated at 53.36 MMboe (23.09 MMboe
net to Circle) equating to a 12.18 MMboe gross increase from the
2011 estimate. 2P Gross Remaining Reserves, which accounts for
production to date, are estimated to be 47.60 MMboe (20.69 MMboe
net to Circle).
Egypt
The new resource estimates take account of the results of the
drilling and development activity up to the Geyad-4 and Geyad-5
wells.
In the NW Gemsa Concession, 2P Gross Initial Oil Reserves are
estimated to be 40.40 MMbo and the 2P Gross Initial Raw Gas
Reserves are estimated to be 45.34 Bscf. This totals a 2P Gross
Initial Reserves value of 48.21 MMboe (19.28 MMboe net to Circle).
This is 34% higher than the P50 estimate of 35.9 MMboe of Ultimate
Recoverable Resources announced in 2011. The principal reasons for
this increase are:
1. the deepening of the oil-water contact by more than 260 feet
(as demonstrated by the recent wells Al Amir SE-7X and Al Ola-2X),
which has resulted in an increase in the estimate of the volume of
oil in place; and
2. the improved recovery efficiency resulting from the
successful water injection programme that has increased the
pressures in producing wells.
Following production of 6.95 MMbo through to the end of 2011,
the 2P Gross Remaining Reserves are estimated to be 42.79 MMboe of
oil, gas and recoverable liquids (17.11 MMboe net to Circle).
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).
2012 ON BLOCK INITIAL RESERVES 2011 ON BLOCK INITIAL URR
(MMBOE)* (MMBOE)**
----------------------------------------------- -------------------------------------------- ------
Field REC. REC. MOST REC. REC.
Formation 2P FAC. 3P FAC. Field Formation LIKELY FAC. UPSIDE FAC.
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
AL AMIR AL AMIR
SE KAREEM 42.9 45% 59.61 50% SE KAREEM 31.3 40% 45.1 50%
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
GEYAD
KAREEM 5.31 45% 7.6 50% GEYAD KAREEM 3.2 45% 6.1 50%
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
AL AMIR
SOUTH GHARIB 1.4 17.50% 3.3 25%
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
GROSS
TOTAL 48.21 67.21 GROSS TOTAL 35.9 54.5
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
NET TOTAL 19.284 26.884 NET TOTAL 14.36 21.8
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
CONTINGENT RESOURCES PROSPECTIVE RESOURCES
----------------------------------------------- ----------------------------------------------------
AL AMIR
SOUTH AL AMIR
GHARIB 1.67 17.5.% 3.49 25% KAREEM 3.9 27.50% 9.3 40%
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
NET 0.668 1.396 NET 1.56 3.72
------------ ------- ------- ------- ------ ---------------- -------- ------- ------- ------
* ECONOMIC CUT-OFF APPLIED AND ** NO ECONOMIC CUT-OFF APPLIED
INCLUDES 6.95 MMBO PRODUCED AND INCLUDES 4.1 MMBO PRODUCED
TO END 2011 TO END 2010
----------------------------------------------- ----------------------------------------------------
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.
Morocco
The new reserve estimates take account of the results of the
drilling and development activity up to ADD-1 well.
In the Sebou concession, the 2P value of Gross Initial Gas
Reserves is 29.88 Bscf (5.15 MMboe) (22.11 Bscf (3.81 MMboe) net to
Circle). This is very close to the P50 value of 30.62 Bscf of
Ultimate Recoverable Resources announced in 2011. Following
production of 1.93 Bscf through to end 2011, the 2P Gross Remaining
Reserves are estimated to be 27.95 Bscf (4.81 MMboe) (20.79 Bscf
(3.58 MMboe) net to Circle).
In the Sebou concession, Circle has a 75% share and ONHYM, the
Moroccan State oil company, has a 25% share. In the Oulad N'zala
concession, Circle has a 60% share and ONHYM has a 40% share. Both
concessions include the right of conversion to a production licence
of 25 years, plus extensions in the event of commercial
discoveries.
2012 ON BLOCK INITIAL RESERVES
(Bscf)# 2011 ON BLOCK INITIAL URR (Bscf)##
---------------------------------------------- --------------------------------------------------
REC. REC. MOST REC. REC.
Concession 2P FAC. 3P FAC. Concession LIKELY FAC. UPSIDE FAC.
------------ ------ ------- ------ ------- ----------- -------- --------- ------- -------
SEBOU SEBOU
+ OULAD + OULAD
N'ZALA N'ZALA
GROSS 29.88 70-87% 42.68 80-95% GROSS 30.6 70-87.5% 41.7 80-95%
------------ ------ ------- ------ ------- ----------- -------- --------- ------- -------
NET 22.11 31.62 NET 23 31.3
------------ ------ ------- ------ ------- ----------- -------- --------- ------- -------
# ECONOMIC CUT-OFF APPLIED AND ## NO ECONOMIC CUT-OFF APPLIED
INCLUDES 1.93 Bscf PRODUCED AND EXCLUDES 1.5 Bscf GAS PRODUCED
To END 2011 AND REMAINING TO BE PRODUCED
FROM ONZ-4 AND ONZ-6 AT END
2010
---------------------------------------------- --------------------------------------------------
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.
Commenting Prof Chris Green, CEO, said:
"We are delighted with the 30% increase in reserves following
the 2012 CPR. The upgrading of our resources to reserves rewards
the successful development work undertaken by Circle. This is a
confirmation that there is potential in developing our discovered
resources through diligent development and effective asset
management. We continue our efforts to maximise both our daily
production and level of recovery."
Glossary
2P/P50 Probability of success
50%
3P Probability of success
10%
Bscf billion standard cubic
feet
MMbo million barrels of oil
MMboe million barrels of oil
equivalent
URR Ultimate Recoverable Resources
The estimates in the report use the Petroleum Resources
Management System ("PRMS") sponsored by SPE/WPC/AAPG/SPEE and are
set out in the tables below together with further explanation of
the results
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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