Circle Oil PLC Operations Update Tunisia (5319V)
December 13 2013 - 9:47AM
UK Regulatory
TIDMCOP
RNS Number : 5319V
Circle Oil PLC
13 December 2013
13 December 2013
Circle Oil Plc
("Circle" or the "Company")
Operations Update Tunisia
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce the following update regarding its operations in
Tunisia.
Tunisia
Grombalia Permit
The Company has been advised that approval has been received
from the Tunisian Government, following a competitive bid process,
to acquire a permit on a block in the Cap Bon peninsula covering a
similar area to the previously owned (now expired) Grombalia permit
in which Circle was a minority partner with Tunisian company Exxoil
(operator). Circle will be the operator and hold a 100% working
interest in the new permit and has the right to apply for
conversion to production licence areas in the event of exploration
success.
The licence covers an area of 2,820 sq km and is in an area
which includes existing oil and gas field concessions including Cap
Bon gas field, Belli oil field, and the El Manzah producing oil
field. The Beni Khaled producing oil field concession, where Circle
is now a 30% W.I. partner (Exxoil 70% and operator) is entirely
enclosed within the new permit. Other discoveries such as Zinnia,
Bir Drassen, and Tiref, exist within or are close to the block, and
Circle recognises a number of prospects and many leads which have
similar geological features to known accumulations. The main
targets are the fractured Eocene to Upper Cretaceous carbonates and
Lower Cretaceous sandstones, although other plays may be developed
following collection of further data.
Circle's work commitment includes the acquisition of 2D and 3D
seismic surveys, followed by drilling four exploration wells within
the first licence phase of three years. Background studies are
already completed and the Company will tender for the seismic
survey at the earliest opportunity. In addition a block-wide study
has already been conducted on existing data to provide an initial
view on prioritisation of the targets to drill. The block is
covered by limited old multi-vintage 2D seismic and given the
existing proven petroleum system in place, the Board's expectations
of additional prospectivity in the light of modern data are
high.
Estimates of in place, pre-drill, unrisked, resources on five
separate structures prepared by external consultants for the
previous operator range from 16MMboe to more than 200MMboe and
totalled 480MMboe. These figures will be subject to revision
following the receipt of new data to be acquired by Circle.
The work programme will be funded out of cash flow and, subject
to completion, funds from the recently announced senior debt
facility.
Professor Green, CEO, Circle Oil said:
We are delighted to announce that our competitive work program
bid for the Grombalia permit in Tunisia has been successful. We
believe this under explored, but highly prospective, area, if
successful, should bring significant added value to both Circle and
Tunisia. We look forward to working together with the Tunisian
authorities towards this goal.
Glossary
MMboe Million barrels of oil equivalent
sq km Square kilometres
2D Two dimensional
3D Three dimensional
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Dr Stuart Harker, VP Geology, also with over
30 years' experience, is the qualified person as defined in the
London Stock Exchange's Guidance Note for Mining and Oil and Gas
companies, who has 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
Investec (+44 20 7597 5970)
Chris Sim
James Rudd
George Price
Liberum Capital Limited (+44 20 3100 2000)
Simon Atkinson
Clayton Bush
Tim Graham
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Priscilla Garcia
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 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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