Circle Oil PLC Financial Update (1393Y)

TIDMCOP

RNS Number : 1393Y

Circle Oil PLC

13 May 2016

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

13 May 2016

CIRCLE OIL PLC

("Circle" or the "Company")

Financial Update

Further to the announcement of 15 April 2016, Circle Oil plc (AIM:COP) the international oil and gas exploration, development and production company, is pleased to announce that International Finance Corporation ("IFC") has agreed to extend the suspension of the December 2015 redetermination and any repayments due under its Reserve Based Lending ("RBL") facility until 27 May 2016. IFC has indicated its willingness to consider further waivers as may be required to continue the Strategic Review process based on circumstances applying at the time of any application.

In addition, the Company has continued to focus on achieving an improvement in the regularity and quantum of US dollar payments from EGPC which now, alongside extracting US dollars from its Moroccan operations, is required to both satisfy its obligations to its creditors and fund operations. The Company expects to receive an improved payment from EGPC for the month of May compared to previous months, however the Company's cash flows and financial position remain under significant pressure and a sustained improvement in payments from EGPC is required.

For further information contact:

Circle Oil Plc ([phone])

Mitch Flegg, CEO

Investec ([phone])

Chris Sim

George Price

James Rudd

Jonathan Wynn

Murray ([phone])

Joe Heron

Pat Walsh

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's shares were admitted to trading 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

EGPC - Egyptian General Petroleum Corporation

This information is provided by RNS

The company news service from the London Stock Exchange

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May 13, 2016 02:00 ET (06:00 GMT)