Circle Oil PLC Operating Update Morocco (5868T)

TIDMCOP

RNS Number : 5868T

Circle Oil PLC

07 October 2014

7 October 2014

Circle Oil Plc

("Circle" or the "Company")

Operating Update Morocco

Morocco Sebou Permit - Discovery Exploration Well CGD-12

Circle Oil Plc (AIM: COP), the Middle East and North Africa focused oil and gas exploration, development and production company, is pleased to announce the preliminary results of drilling of the well CGD-12 in the Sebou Permit, onshore Morocco.

The well is located within the western central area of the Sebou Permit, about 4 kilometres to the south of the main gas gathering station. The well was spud on 25 August and drilled to a TD of 1,232 metres MD. Gas shows, which were confirmed by wire logging, were encountered at different levels within the Guebbas and Hoot sands.

The total net gas pay encountered in the well from wireline log analysis is 9.7 metres. The seven inch liner was run and cemented and the first test over the secondary target Intra Hoot sands flowed at a sustained rate of 2.21 MMscf/d on a 18/64" choke. The second test over the main target Main Hoot sands flowed at a sustained rate of 4.62 MMscf/d on a 24/64" choke. The well will be completed for future production and the Upper Hoot and Guebbas sands will be available for production at a later date.

The rig will now be moved to drill KSR-12, the third well of the Sebou campaign. Further updates will be provided in due course.

Commenting on the results of the CGD-12 well Prof. Chris Green, CEO, said:

"We are very pleased to have another successful discovery in our Sebou permit and have proven additional reserves for potential gas production. This is the second well of a six well programme to be drilled with our partner ONHYM in the Sebou permit and is coupled with another six well programme in the Lalla Mimouna permit."

 
Glossary 
MD        Measured Depth 
 MMscf/d   Millions of standard cubic feet of gas per 
           day 
TD        Total Depth 
 

For further information contact:

Circle Oil Plc ([phone])

Professor Chris Green, CEO

Investec ([phone])

Chris Sim

George Price

James Rudd

Liberum Capital Limited ([phone])

Clayton Bush

Tim Graham

Citigate Dewe Rogerson ([phone])

Martin Jackson

Shabnam Bashir

Murray Consultants ([phone])

Joe Murray

Joe Heron

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

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