Circle Oil PLC Egypt Operational Update (4035Y)

TIDMCOP

RNS Number : 4035Y

Circle Oil PLC

17 May 2016

17 May 2016

CIRCLE OIL PLC

("Circle" or the "Company")

Egypt Operational Update

Circle Oil plc (AIM:COP) the international oil and gas exploration, development and production company announces that the 2016 infill drilling campaign on the North West Gemsa field(1) has been completed. The second of the two production wells, AASE-24 has been drilled to TD, completed and tied in to the production infrastructure. On 16 May a well test commenced and the well flowed at a gross average rate of 1,714bbls/day of oil and 3.062mmcf/d of gas through a 40/64" choke.

The well will be produced at a lower rate in order to best manage the long term field production.

Circle CEO, Mitch Flegg said

"We are pleased with the results of this two well drilling campaign which will help to maintain production rates and manage field production. There is no further drilling planned in 2016 although there is an ongoing workover campaign which we also expect to help maintain production levels."

(1) Circle Oil 40%, NPIC 50%, SDX 10%

For further information contact:

Circle Oil Plc ([phone])

Mitch Flegg, CEO

Investec ([phone])

Chris Sim

George Price

James Rudd

Murray ([phone])

Joe Heron

Pat Walsh

In accordance with the guidelines of the AIM Market of the London Stock Exchange the technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Executive Officer of Circle Oil plc. Mitch Flegg, who has over 34 years of experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies,

Mitch Flegg holds a BSc in Physics from Birmingham University and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).

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.

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.

Glossary

bbls/day -- barrels per day

mmcf/d - million cubic feet per day

This information is provided by RNS

The company news service from the London Stock Exchange

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May 17, 2016 02:01 ET (06:01 GMT)