Circle Oil PLC Senior Debt Facility of up to US$100 Million (7524S)

TIDMCOP

RNS Number : 7524S

Circle Oil PLC

12 November 2013

12 November 2013

Circle Oil Plc

("Circle" or the "Company")

Senior Debt Facility of up to US$100 Million

Circle Oil Plc (AIM: COP), the Middle East and Africa focused oil and gas exploration, development and production company, is pleased to announce that IFC, a member of the World Bank Group, has received board approval to lead a four year reserve based lending facility (the "Facility") of up to US$100 million to Circle and its subsidiaries.

IFC's board approval allows it to take and hold up to US$50 million of the Facility and syndicate the remainder to a group of international banks specialising in reserve based lending to independent oil and gas companies. The Facility will be secured on the Company's producing assets in Egypt and Morocco.

The Facility is to be made available to finance and refinance capital investment and operating costs in respect of the Company's assets in Egypt, Morocco and Tunisia as well as for general corporate purposes including supporting the continuing growth of the Company in its areas of operation. The Company and IFC will now proceed to finalise and agree all relevant documentation and conditions precedent to enable drawdown.

As at 31 October 2013, Circle had cash balances of approximately US$20 million.

Commenting on the Facility, Prof Chris Green, CEO, said:

"Circle is delighted to announce the receipt of final stage board approval from IFC. Added to our existing reserves, this funding will give Circle the financial strength to exploit its portfolio of assets throughout the Middle East and North Africa. This enhanced financial position will also give us greater ability to acquire additional projects and licences. We are delighted with this approval and support from IFC."

For further information contact:

Circle Oil Plc ([phone])

Professor Chris Green, CEO

Brendan McMorrow, CFO

Investec ([phone])

Chris Sim

George Price

James Rudd

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 number of 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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