Circle Oil PLC Operating Update Tunisia (9649P)
August 26 2014 - 2:02AM
UK Regulatory
TIDMCOP
RNS Number : 9649P
Circle Oil PLC
26 August 2014
26 August 2014
Circle Oil Plc
("Circle" or the "Company")
Operating Update Tunisia
Mahdia Permit - Exploration Well EMD-1 Discovery
Circle Oil Plc (AIM: COP), the Middle East and Africa focused
oil and gas exploration, development and production company, is
pleased to announce the preliminary results of drilling of the well
EMD-1 in the Mahdia Permit, offshore Tunisia.
The El Mediouni-1 well (EMD-1) is located within the north
central area of the Mahdia Permit in a water depth of 240 metres,
120 km east of the port of Sousse. EMD-1 was spudded on 8 June 2014
and drilled to a TD of 1,200 metres MD in the Upper Ketatna
carbonates. The stratigraphy encountered in the well was exactly as
prognosed and very good light oil shows were encountered both in
the Lower Birsa carbonate primary target and the Upper Ketatna
carbonates secondary target over a combined interval of 133
metres.
The strong hydrocarbon indications encountered in the Birsa and
Ketatna carbonates confirm the existence of a working petroleum
system in the Mahdia Permit for this and other prospects. The
robustness of the El Mediouni trap has also been proven. The losses
incurred within the target formations, as described below, give
further confirmation of high quality permeability. The gross oil
zone interval in the Lower Birsa is 77 metres and the Upper Ketatna
has a minimum interval of 48 metres, subject to confirmation by
logs. Using known reservoir and fluid parameters from equivalent
formations in the Gulf of Hammamet, the internally estimated most
likely recoverable prospective resources discovered by the EMD-1
well are approximately 100 MMBO.
During the drilling of the target carbonates, severe mud losses
occurred and multiple remedial operations to restore circulation
were performed. This included the pumping of numerous CaCO3 pills,
conventional lost circulation material and large volumes of sea
water. The hole conditions in the well deteriorated rapidly and
multiple attempts at open hole logging by wireline and tough
logging conditions equipment failed. Ultimately the decision was
taken to terminate further efforts and suspend the well.
Circle Oil has been granted a six month extension to the Mahdia
permit to January 2015. It then has the right to elect for two
additional renewals of the permit for 3 years each with a
commitment of one well per period.
Commenting on the results of the EMD-1 well Prof. Chris Green,
CEO, said:
"We are extremely pleased to add this potential large discovery
to our portfolio in Tunisia. It is unfortunate that the hole
conditions became untenable so quickly and we were unable to
conduct a full log evaluation of the hydrocarbon column in the
well. Nevertheless we intend to take our appraisal effort forward
on the Mahdia Permit as quickly as possible following this proof of
the El Mediouni petroleum accumulation and will provide further
updates of our plans in due course. We look forward to working with
ETAP on the next stage of this project."
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)
Clayton Bush
Tim Graham
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0320)
Joe Murray
Joe Heron
Glossary
MMBO Million Barrels of Oil
ETAP Entreprise Tunisienne d'Activités Pétrolières
CaCO3 Calcium carbonate
Lost circulation Substances (e.g. shedded bark, nut husks, mica
material flakes) added to the drilling fluids to prevent
further fluid losses to the formation
MD Measured Depth
TD Total Depth
Tough Logging Conditions Drill pipe conveyed logging tools
equipment
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Dr Stuart Harker, VP Geology, with over 40
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. Dr. Harker holds a BSc (Hons) in
Geology from the University of London (UK) and an MSc and PhD from
the University of Saskatchewan, Canada. He is also a Fellow of the
Geological Society of London and a Chartered Geologist.
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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