Circle Oil PLC Operating Update Egypt (2072I)
July 23 2012 - 2:00AM
UK Regulatory
TIDMCOP
RNS Number : 2072I
Circle Oil PLC
23 July 2012
23 July 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-12X ST 1 Well
Development well AASE-12X was spudded on 25 April 2012 and is
located in the south- central part of the AASE field, updip of the
Al Ola-1X producer. The well's objective was to appraise both the
Shagar and Rahmi sands production in that location. The well
reached a TD of 10,200 ft MD before being sidetracked to the
north-east, for geological reasons, as AASE-12X ST1 and was then
successfully drilled to a total depth of 10,300 ft MD into the base
Kareem. The well encountered 15.5 ft of net pay in the Kareem
Shagar sand, with oil bearing sands present to the base of the
reservoir. The well has been completed as a Shagar sand producer
and has been perforated in the interval 9,669 to 9,684.5 ft MD and
flowed oil and gas on test at an average rate of 2,595 bopd and 4.7
MMscf/d respectively, on a 48/64" choke. The well has now been
placed on production at an initial flow rate of 1,038 bopd using a
28/64" choke.
Al Ola-3 Well
Following the successful completion of the AASE-12X ST1 well,
the rig has been mobilised to drill the appraisal/injection well Al
Ola-3, in the southern part of the AASE field. The well is expected
to be an injector well targeting the Kareem sands, located to the
south of Al Ola-1 and Al Ola-2 wells.
Production
Currently production from the AASE, Geyad and Al Ola fields is
approximately 9,300 bopd (gross). Cumulative production from the NW
Gemsa Concession has now exceeded 8.6 million barrels of 42 degree
API Crude oil.
The NW Gemsa Concession, containing the Al Amir, Geyad and Al
Ola Development Leases, covering an area of over 260 square
kilometres, lies approximately 300 kilometres south-east of Cairo
in a partially unexplored area of the Gulf of Suez Basin.
In the event of commercial discoveries, the concession agreement
includes the right of conversion to a production licence of 20
years plus extensions. 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
"Circle is pleased with the results of the AASE-12X ST1 well,
which has been completed as a Shagar sand producer with good
initial flow. This well result further proves up the south central
part of the AASE field and will add to the production rate and
ultimate recovery from the field. The rig has now being moved to
drill the Al Ola-3 well, which is intended as a southern water
injector for the AASE field and is part of the overall plan to
improve the productivity of the NW Gemsa accumulations."
Glossary
bopd barrels of oil per day
ft feet
MD Measured depth
TD Target 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
Investec (+44 20 7597 5970)
Chris Sim
Neil Elliot
Liberum Capital Limited (+44 20 3100 2222)
Simon Atkinson
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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