Circle Oil PLC Operating Update Morocco (0620Q)

TIDMCOP

RNS Number : 0620Q

Circle Oil PLC

27 August 2014

27 August 2014

Circle Oil Plc

("Circle" or the "Company")

Operating Update Morocco

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following operating update.

Sebou and Lalla Mimouna Permits

The third drilling campaign in the Sebou permit and first campaign in the Lalla Mimouna permit continue with the spud of the second well named CGD-12 to be drilled in the Sebou permit.

The 12 locations initially chosen for the campaign are targeting accumulations similar to the existing producing geological intervals in the Sebou permit. This second well will test a dipping fault bounded sand lens at 1,021 metres MD in the Guebbas Formation within which many of the previous discoveries have been successfully drilled.

Depending on progress rates the well is expected to take approximately 30 - 35 days to drill.

Both the Sebou and Lalla Mimouna permits are a partnership between Circle Oil Maroc Ltd (75%) and ONHYM (Office National des Hydrocarbures et des Mines) (25%).

The Petroleum Agreements include the right of conversion to a production licence in the event of commercial discoveries.

Production Update

Production in Sebou is continuing at 6.8 - 7 MMscf/d gross.

Prof Chris Green, CEO, said:

"Circle is very pleased to announce the start-up of our second well in the third drilling campaign in Morocco. We again thank our partner ONHYM for its continuing support and assistance as we continue our joint work programme."

Glossary

 
 MD        Measured Depth 
 MMscf/d   Millions of standard cubic feet of gas per day 
 

For further information contact:

Circle Oil Plc ([phone])

Professor Chris Green, CEO

Investec ([phone])

Chris Sim

George Price

James Rudd

Liberum Capital Limited ([phone])

Clayton Bush

Tim Graham

Citigate Dewe Rogerson ([phone])

Martin Jackson

Shabnam Bashir

Murray Consultants ([phone])

Joe Murray

Joe Heron

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, Oman, 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 continued to expand its portfolio over the past years and now has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia, and the Zeit Bay area of Egypt. Circle also has the largest licensed acreage of any company in Oman. In addition to its prospective Block 52 offshore, Circle has an ongoing exploration programme in Block 49 onshore.

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

END

DRLPGUAPRUPCGRQ