Circle Oil PLC Operating Update Morocco (2898R)

TIDMCOP

RNS Number : 2898R

Circle Oil PLC

26 June 2015

26 June 2015

Circle Oil Plc

("Circle" or the "Company")

Operating Update Morocco

Lalla Mimouna Permit -LAM-1 Well Update

Circle Oil Plc (AIM: COP), the North African focused oil and gas exploration, development and production company, is pleased to provide an update on the progress of the LAM-1 well on the Lalla Mimouna Permit, onshore Morocco.

LAM-1, the first well drilled by Circle on the Lalla Mimouna permit, targeted the Miocene gas-bearing sands, similar to the Sebou Permit to the south of Lalla Mimouna. The TD of the well at 1,541 metres MD was reached on 26 May 2015, prospective gas zones were logged, a completion string was installed and the rig relocated to drill the ANS-2 well.

The LAM-1 well was then tested using a slick-line unit following the release of the rig. The primary target was perforated at 1,261-1,272 metres and flowed gas at a stabilised rate of 1.9 MMscf/d on a 16/64" choke and the secondary target was perforated at 1,181-1,183 metres MD and flowed at a stabilised rate of 1.1 MMscf/d on a 16/64" choke.

The rig has been mobilised to drill the ANS-2 well, the second well of Circle's drilling campaign on Lalla Mimouna, located on the northern flank of the East-West trending Anasba ridge. This well has a primary target for Miocene gas-bearing sands at 1,007 metres MD and prognosed TD at 1,062 metres MD. Depending on progress rates, initial results could be available in approximately 20 days.

Commenting on the results of the LAM-1 well Mitch Flegg, CEO, said:

"We are delighted that our first well on the Lalla Mimouna Nord Block has such positive results, flowing gas at significant rates from both target intervals. The productivity of this first well is very encouraging for the expansion of Circle's portfolio of Morocco gas fields."

The Lalla Mimouna permit is a partnership between Circle Oil Maroc Ltd (75%) and ONHYM (Office Nationale de Hydrocarbures et des Mines) (25%).

For further information contact:

Circle Oil Plc ([phone])

Mitch Flegg, Chief Executive Officer

Investec ([phone])

Chris Sim

George Price

James Rudd

Citigate Dewe Rogerson ([phone])

Martin Jackson

Shabnam Bashir

Murray Consultants ([phone])

Joe Heron

Pat Walsh

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

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Stuart Harker, VP Geology, with over 40 years of 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, 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 assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW Gemsa permit in Zeit Bay area of Egypt.

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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