Drilling Update Morocco (8341A)

TIDMCOP

RNS Number : 8341A

Circle Oil PLC

08 February 2011

8th February 2011

Circle Oil Plc

("Circle" or the "Company")

Drilling Update Morocco

Further Gas Discovery DRJ-6

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce that the DRJ-6 exploration well has been successfully tested in the Sebou Permit, Rharb Basin, Morocco. DRJ-6 was drilled in April 2009 and, as previously announced, not tested due to local logistical problems at the time of drilling.

The Company confirms a gas discovery in the Base Guebbas target. The well tested gas at a sustained rate of 5.363 mmscf/d on a 26/64" choke. The perforated Base Guebbas zone of 1.5 metres at 1,042.25 - 1,043.75 metres MD and 3 metres at 1,046.0 - 1,049.0 metres MD has a calculated net gas pay of 4.5 metres. The well is being completed as a potential producer.

A full technical evaluation of all the results of the well is underway. This will allow for forward planning as a precursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves.

Due to bad weather over the last two weeks and some flooding in the permit area, the drilling rig will be demobilised to move onto the higher level KSR-10 site near to the location of the fifth and final well of this campaign, being the KSR-11 exploration well. The rig is expected to be stored for 2-3 weeks whilst weather conditions improve before drilling operations on KSR-11 commence. Further updates will be provided in due course.

The Sebou permit lies to the north-east of Rabat in the Rharb Basin in Morocco. The Rharb Basin is a foredeep basin located in the external zone of the Rif Folded belt. The concession agreement, in which Circle has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production licence of 25 years, plus extensions in the event of commercial discoveries.

Prof. Chris Green, CEO, said:

"The successful testing of DRJ-6 is particularly pleasing as it means that a 100% success rate has now been achieved from the six wells drilled during the first campaign."

Glossary

mmscf/d millions of standard cubic feet per day

MD Measured Depth

ONHYM Office National des Hydrocarbures et des Mines

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Professor Chris Green, Chief Executive 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.

For further information contact:

Circle Oil Plc ([phone]) Professor Chris Green, CEO

Evolution Securities ([phone]) Rob Collins Chris Sim Neil Elliot

Fox-Davies Capital ([phone]) Daniel Fox-Davies

Philip Davies

David Porter

Citigate Dewe Rogerson ([phone]) Martin Jackson George Cazenove

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 producing, low-risk near-term production and acreage with significant upside exploration 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 Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; and the Zeit Bay area of Egypt. Circle also has the largest licence holding of any Company in Oman. In addition to offshore Block 52, the Company also has an ongoing exploration program in Block 49 onshore.

The Company'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. Circle may use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment. In addition it may seek farm-outs to selected partners who would then invest in the exploration and continue through to the development of the assets for production.

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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