Drilling Update

 

TIDMCOP 
 
RNS Number : 9112X 
Circle Oil PLC 
25 August 2009 
 

 
 
 
 
25 August 2009 
 
 
Circle Oil Plc 
("Circle" or the "Company") 
 
 
Successful test to Al Amir SE-3 Well 
Al Amir Development Lease, NW Gemsa Concession, Egypt 
 
 
 
 
Circle Oil plc (AIM: COP), the international oil and gas exploration and 
development company, is pleased to announce initial results from the Al-Amir 
SE-3 appraisal well which has been successfully drilled following sidetracking 
in the onshore North West Gemsa Concession in Egypt. 
 
 
Circle is delighted to confirm the well tested 40  API oil and gas in the Kareem 
Shagar Formation at a sustained average rate from 35 feet net pay of 2,395 bopd 
and 2.2 MMscfd using a 32/64" choke. Short term testing achieved a rate of 4,938 
standard bopd and 8MMscfd with a 64/64"choke. 
 
 
 A full technical evaluation of all the results is underway to further assess 
the resource and to permit development planning.  An assessment of reserves has 
not yet been completed. The well was completed as a potential producer with the 
testing being carried out once the rig, Mubarak-1, moved to commence drilling 
the Al Amir SE-4 appraisal well. 
 
 
The NW Gemsa concession covers an area of over 400 square kilometres and lies 
about 300 kilometres southeast of Cairo, in a partially unexplored area of the 
Gulf of Suez Basin. The concession agreement includes the right of conversion to 
a production licence of 20 years, plus extensions, in the event of commercial 
discoveries. The NW Gemsa Concession partners are Vegas Oil and Gas (50% 
interest and operator), Circle Oil plc (40% interest) and Premier Oil plc (10% 
interest). 
 
 
 
 
Commenting on this latest discovery, David Hough, CEO of Circle, said: 
 
 
"We are obviously delighted that the Al Amir SE-3 appraisal has been successful. 
These appraisal wells are adding important information to our knowledge of the 
Al-Amir SE area including more data necessary for reservoir model development. 
With the infrastructural engineering for the Geyad -1 discovery now completed, 
we are pushing ahead to achieve an increase in near term production as soon as 
possible. The rig has now spudded the third appraisal well on the field (Al-Amir 
SE-4). This appraisal location, which is regarded as a higher risk location, 
also has the alternative role of being potentially suitable to be used as an 
injector to provide pressure support should that be needed in the future." 
 
 
 
+-----------------+------------------------------------------------------------+ 
| Glossary        |                                                            | 
|                 |                                                            | 
+-----------------+------------------------------------------------------------+ 
| API             | American Petroleum Institute density scale                 | 
+-----------------+------------------------------------------------------------+ 
| Bopd            | Barrels of oil per day                                     | 
+-----------------+------------------------------------------------------------+ 
| MMscfd          | Millions standard cubic feet per day                       | 
+-----------------+------------------------------------------------------------+ 
 
 
In accordance with the guidelines of the AIM Market of the London Stock 
Exchange, Professor Chris Green, Chief Operating Officer of Circle Oil plc, an 
explorationist and geophysicist with over thirty years oil & gas industry 
experience, is a 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. In carrying 
out his review Professor Green has relied on information supplied by the 
operator. 
 
 
 
 
For further information contact: 
 
 
Circle Oil Plc ([phone]) 
David Hough, CEO 
 
 
Collins Stewart Europe Limited ([phone]) 
Adrian Hadden / Adam Cowen 
 
 
Fox-Davies Capital ([phone]) 
Daniel Fox-Davies 
 
 
Citigate Dewe Rogerson ([phone]) 
Martin Jackson 
 
 
 
 
Notes to Editors: 
 
 
Circle Oil plc 
 
 
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and 
production Company with an expanding portfolio of assets in Morocco, Tunisia, 
Oman, Egypt and Namibia with a combination of low-risk near-term production and 
significant exploration upside potential. The Company listed on AIM in October 
2004. 
 
 
Internationally, the Company has continued to expand its portfolio over the past 
2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in 
southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in 
northern Tunisia; the Zeit Bay area of Egypt and the Owambo Basin, Namibia. 
Circle also has the largest licence holding of any Company in Oman. In addition 
to its highly prospective Block 52 offshore, the Company also has an ongoing 
exploration program in Block 49 onshore. 
 
 
The Company's strategy is to locate and secure additional licenses 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 itself 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 
   END 
 
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