TIDMCOP
RNS Number : 7422C
Circle Oil PLC
20 March 2014
20 March 2014
Circle Oil Plc
("Circle" or the "Company")
Operating Update
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce the following operating update.
Egypt
Al Amir SE Field ("AASE") and the Geyad Field
The AASE-19 well has now been hooked up as a Shagar producer and
was producing at a rate of 517 bopd gross and 0.397 MMscf/d on 14
March, the first full 24 hours of production. The rig has moved to
drill the infill AASE-21 well located about 1,000 metres south-east
of the AASE-4 well and 800 metres north-west of the AASE-1X well to
appraise both the Shagar and Rahmi sands for production.
Current gross daily production from the AASE and the Geyad Field
continues at approximately 11,200 bopd and 11 MMscf/d.
Following completion of the current AASE-21 well, the rig is
planned to move on to drill an infill support injector well in the
north central part of the field prior to release on sub contract.
In parallel, reservoir engineering studies are being advanced to
develop a dynamic reservoir model to assess reservoir behaviour for
the future. This will provide the necessary interactive picture for
the effective and efficient management of the two producing fields
going forward. This period of reservoir management study will also
permit the planning of any future infill drilling both for
producers and injectors to maximise reserve recovery for the medium
and long term.
Oman
Block 49
The tender process for the forthcoming Block 49 commitment well
is at the evaluation stage. The well provisionally named Shisr-1 is
to be drilled on the north-western dip-slope of the Ghudun-Khasfah
high, approximately 60 kilometres south-west and updip of the
Dauka-1 well.
The well is targeting an Intra Haima seismic anomaly with an
updip pinchout of the Safiq sands. The well is expected to be
drilled to a TD of 2,500 metres with a top target at 2,350 metres
with pre-drill P50 STOOIP 56 MMbo, with recoverable prospective
resources estimated 14 MMbo.(1) Drilling is planned to commence
within H1 2014 and is expected to take up to approximately 45 days
without testing. This commitment well is regarded as high risk with
a GCOS of 10-12% and completes Circle's commitment on the
Block.
Block 52
The planned inshore 2D seismic survey on Block 52 is due to
commence on 21 March with the seismic vessel MV Hindsagar. The
programme is, as previously announced, to acquire 850 kilometres of
2D seismic data to map and prioritise the three inshore leads
identified through interpretation of existing 2D data.
Oman 2013 bid round
In Oman, as previously indicated, the Company bid for an onshore
Block in the 2013 bid round and continues to progress its bid with
the relevant authorities.
Morocco
Sebou and Lalla Mimouna Permits
The drilling campaign scheduled to start in mid to end January
2014 has been delayed and all preparations slowed by the continuing
seasonal rains in the Rharb. As in previous years significant areas
within the concession area are subject to flooding which has been
known to continue into late spring. Well proposals are now
completed for the first six wells which are located on both permits
with the first to be drilled in the Sebou permit. The Company is
presently planning to drill 12 wells which includes the KAB-1
re-drill.
Current gross daily production from our producing gas wells in
the Sebou permit is 7 MMscf/d.
Tunisia
Mahdia Block
Plans are well advanced for the drilling of the Mahdia
commitment well with long lead items prepared for shipment, main
and sub contractor tenders issued with some awarded and others
under commercial evaluation or awaiting ETAP approvals. Subject to
final negotiation and Tunisian authorities' approvals the drilling
unit has been selected. A farm-out exercise is also underway with a
number of companies signed-up to attend the data room this month
with further promotion underway.
The licence is within the vicinity of many producing fields,
including the Tazerka, Birsa, Oudna, and Halk El Menzel oil fields,
and the Maamoura gas field. The most recent discovery, the Mahdia-2
well, located approximately 20 kilometres west of the Block, tested
approximately 2,700 bopd from the Serdj carbonate reservoir. This
is one of the several possible reservoir horizons proven by
producing plays in the region.
The Mahdia exploration well provisionally designated El
Medouini-1 is planned to test the stacked play potential of the El
Mediouni prospect, including both the primary Birsa Sands target
and the secondary fractured carbonates of the Ketatna and Abiod
formations as well as the deeper Serdj carbonates. The Birsa Sands
alone have an estimated pre-drill P50 case of 185 MMbbls STOOIP.(2)
The El Mediouni-1 well will be drilled to a depth of up to 2,300
metres, targeting the stacked primary and secondary reservoir
horizons between 1,000 metres and 2,100 metres in subsea depth. The
recoverable prospective resources estimate for the El Medouini
prospect is 46 MMbbls (2) for the Birsa objective alone,
substantially larger than the recoverable commercial threshold for
the area which sits at approximately 10 MMbo.
Annual Results
The Company is trading in line with management expectations and
expects to issue its Preliminary Results announcement for the year
ended 31 December 2013 at the end of May.
Prof Chris Green, CEO, said
"Circle is now entering an exciting and busy operational period
in all of its geographies. We were 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. Drilling operations
offshore Tunisia and onshore Oman approach and we await the end of
our frustrating delays in Morocco and being able to start our
multi-well drilling campaign."
Glossary
boepd barrels of oil equivalent per day
bopd barrels of oil per day
GCOS Geological Chance of Success
MD Measured Depth
MMbo Million barrels of oil
MMbbls Million barrels
MMscf/d Million standard cubic feet of gas
per day
P50 50% chance of success
STOOIP Stock Tank Oil Originally in Place
2D Two Dimensional
3D Three Dimensional
(1) Circle internal estimate post 2009 3D seismic
interpretation
(2) Circle internal estimate post evaluation of 2013 3D seismic
survey
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 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. Dr Harker has relied on primary
information supplied by the operator in carrying out his
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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