Circle Oil PLC Operations Update Tunisia (5319V)

TIDMCOP

RNS Number : 5319V

Circle Oil PLC

13 December 2013

13 December 2013

Circle Oil Plc

("Circle" or the "Company")

Operations Update Tunisia

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

Tunisia

Grombalia Permit

The Company has been advised that approval has been received from the Tunisian Government, following a competitive bid process, to acquire a permit on a block in the Cap Bon peninsula covering a similar area to the previously owned (now expired) Grombalia permit in which Circle was a minority partner with Tunisian company Exxoil (operator). Circle will be the operator and hold a 100% working interest in the new permit and has the right to apply for conversion to production licence areas in the event of exploration success.

The licence covers an area of 2,820 sq km and is in an area which includes existing oil and gas field concessions including Cap Bon gas field, Belli oil field, and the El Manzah producing oil field. The Beni Khaled producing oil field concession, where Circle is now a 30% W.I. partner (Exxoil 70% and operator) is entirely enclosed within the new permit. Other discoveries such as Zinnia, Bir Drassen, and Tiref, exist within or are close to the block, and Circle recognises a number of prospects and many leads which have similar geological features to known accumulations. The main targets are the fractured Eocene to Upper Cretaceous carbonates and Lower Cretaceous sandstones, although other plays may be developed following collection of further data.

Circle's work commitment includes the acquisition of 2D and 3D seismic surveys, followed by drilling four exploration wells within the first licence phase of three years. Background studies are already completed and the Company will tender for the seismic survey at the earliest opportunity. In addition a block-wide study has already been conducted on existing data to provide an initial view on prioritisation of the targets to drill. The block is covered by limited old multi-vintage 2D seismic and given the existing proven petroleum system in place, the Board's expectations of additional prospectivity in the light of modern data are high.

Estimates of in place, pre-drill, unrisked, resources on five separate structures prepared by external consultants for the previous operator range from 16MMboe to more than 200MMboe and totalled 480MMboe. These figures will be subject to revision following the receipt of new data to be acquired by Circle.

The work programme will be funded out of cash flow and, subject to completion, funds from the recently announced senior debt facility.

Professor Green, CEO, Circle Oil said:

We are delighted to announce that our competitive work program bid for the Grombalia permit in Tunisia has been successful. We believe this under explored, but highly prospective, area, if successful, should bring significant added value to both Circle and Tunisia. We look forward to working together with the Tunisian authorities towards this goal.

Glossary

   MMboe                         Million barrels of oil equivalent 
   sq km                                      Square kilometres 
   2D                                           Two dimensional 
   3D                                           Three dimensional 

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Stuart Harker, VP Geology, also with over 30 years' experience, is the 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.

For further information contact:

   Circle Oil Plc                           ([phone]) 

Professor Chris Green, CEO

   Investec                                   ([phone]) 

Chris Sim

James Rudd

George Price

   Liberum Capital Limited          ([phone]) 

Simon Atkinson

Clayton Bush

Tim Graham

   Citigate Dewe Rogerson        ([phone]) 

Martin Jackson

Priscilla Garcia

   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 with an expanding portfolio of assets in Morocco, Tunisia, Oman and Egypt 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 two 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 licence holding of any company in Oman. In addition to its prospective Block 52 offshore, Circle also 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 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

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