Operational Update - Egypt

 

TIDMCOP 
 
RNS Number : 6412G 
Circle Oil PLC 
04 February 2010 
 

 
4th February 2010 
 
                                 CIRCLE OIL PLC 
                          ("Circle" or the "Company") 
 
                           Operational Update - Egypt 
                     Production commences from Geyad-2X ST1 
 
Circle Oil Plc (AIM: COP), the international oil and gas exploration, 
development and production company, is pleased to announce that the Geyad-2X ST1 
well has commenced production in the onshore NW Gemsa Concession in Egypt. 
 
Production has started from the upper of the two identified pay zones in the 
Kareem Shagar Sandstone.  The lower untested pay zone, in the Kareem Rahmi 
Sandstone, will be further evaluated at a later date. 
 
The Geyad-2X ST1 well is producing at a rate of approximately 2100 Bopd. 
Overall, adjusted daily production from the Al Amir Development Lease and the 
two Geyad wells is now over 9200 Bopd.  Cumulative oil production from the area 
since production began in late February 2009 is now over 1.3MMbbls. 
 
The NW Gemsa Concession, containing the Al Amir Development Lease and covering 
an area of over 260 square kilometres, 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 include: Vegas Oil and Gas (50% interest and operator); Circle Oil plc 
(40% interest); and Sea Dragon Energy (10% interest). 
 
The rig is now drilling the Al-Amir SE-5 well where, as previously announced, 
the primary target is the Kareem Formation. This well is being drilled primarily 
to delineate a potential reservoir boundary. 
 
 
David Hough, CEO of Circle said: 
 
"We are obviously delighted to be able to announce that Geyad-2 is in 
production and that daily production from the concession has climbed to over 
9200 Bopd.  We are now resuming our drilling programme in the Al Amir area where 
the next well, Al Amir SE-5, is being drilled for reservoir delineation 
purposes." 
 
 
Glossary 
 
Bopd    - Barrels of oil per day 
 
MMbbls -  Millions of barrels 
 
For further information contact: 
 
Circle Oil Plc ([phone] 
David Hough, CEO 
 
Collins Stewart Europe Limited ([phone]) 
Adrian Hadden 
 
Fox-Davies Capital ([phone]) 
Daniel Fox-Davies 
 
Citigate Dewe Rogerson ([phone]) 
Martin Jackson / George Cazenove 
 
Murray Consultants ([phone]) 
Joe Murray 
 
 
Notes to Editors 
 
Circle Oil Plc 
 
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, 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 Marmour 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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