Circle Oil PLC Lender Redemption Notice (8887M)

TIDMCOP

RNS Number : 8887M

Circle Oil PLC

19 October 2016

CIRCLE OIL PLC

("Circle" or the "Company")

19 October 2016

Lender Redemption Notice

Circle Oil plc (AIM:COP) announces that it has received a lender redemption notice from Circle Link S.ar.L ("Circle Link") in respect of a convertible loan agreement dated 8 June 2007 (amended and restated on 23 May 2012 and 24 April 2015) (the "CLA") as Circle Link believe an event of default has occurred under the CLA.

The lender redemption notice calls for the repayment by Circle of the outstanding loan amount under the CLA of US$20 million together with accrued interest thereon by 15 November 2016. As at 30 June 2016, the Company held cash and cash equivalents of US$7.3 million and had debt of US$77.5 million.

Circle is continuing to discuss its position with Circle Link and with the International Finance Corporation, as principal lender on its reserve based lending facility, in an effort to identify a way forward in the very near future that will allow the Company to complete the Strategic Review process announced in March 2016.

The Strategic Review process remains ongoing and further updates will be provided as appropriate.

For further information contact:

Circle Oil Plc ([phone])

Mitch Flegg, CEO

Investec ([phone])

Chris Sim

George Price

James Rudd

Murray Consultants ([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 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..

Further information on Circle Oil 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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October 19, 2016 02:00 ET (06:00 GMT)