Circle Oil PLC Operating Update Egypt (3918B)
March 03 2014 - 10:33AM
UK Regulatory
TIDMCOP
RNS Number : 3918B
Circle Oil PLC
03 March 2014
3 March 2014
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 in Egypt.
AASE-19 Well
AASE-19 was spud on 1 December 2013 and was subsequently
side-tracked for geological reasons. The surface location lies in
the north-western part of the AASE permit and the bottom hole of
the side-track lies up-dip about 900 metres to the east of the
AASE-4 producer. The well's objective was to appraise both the
Shagar and Rahmi sands for production. It encountered the Kareem
sands with 14 feet of net pay in the Shagar and 10.5 feet of net
pay in the Rahmi, both zones are of good reservoir quality. Initial
short term testing of the well has yielded flow rates, under a
48/64" choke, of 1,242 bopd and 1.13 MMscf/d of gas (206 boepd) for
a total of 1,448 boepd. The well will be hooked up as a Shagar
producer and further results will be provided in due course.
AASE-21 Well
The rig will move to drill the infill AASE-21 well located about
1,200 metres south-east of AASE-4 and 800 metres north-west of the
AASE-1X well to appraise both the Shagar and Rahmi sands for
production.
Production
The current gross daily production rate from the AASE and the
Geyad Field is now standing at 11,190 bopd and 11.2 MMscf/d (2,038
boepd) for a total of 13,228 boepd. Cumulative production from the
NW Gemsa Concession has now exceeded 14.6 million barrels of 42
degree API crude oil.
Water Injection
Water injection in the AASE and Geyad Field is currently about
28,400 bwpd and the cumulative injection to date is about 18.5
MMbw.
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 included 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
"Circle is very pleased with the results of the sidetrack of the
AASE-19 well, which will provide additional oil and gas production
from the Al Amir SE field."
Glossary
boepd barrels of oil equivalent per day
bopd barrels of oil per day
bwpd barrels of water per day
MMbw Millions of barrels of water.
MMscf/d Millions of standard cubic feet of gas
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
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)
Simon Atkinson
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0320)
Joe Murray
Joe Heron
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas
exploration, development and production Company holding a portfolio
of assets in Morocco, Tunisia, Oman, and Egypt with a combination
of low-risk, near-term production, and significant upside
exploration potential. The Company listed on AIM in October
2004.
Internationally, the Company has continued to expand its
portfolio over the past 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 licensed acreage of any company in
Oman. In addition to its prospective Block 52 offshore, Circle 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 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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