Operational Update

 

TIDMCOP 
 
RNS Number : 9473I 
Circle Oil PLC 
22 March 2010 
 

 
22 March 2010 
 
                                 CIRCLE OIL PLC 
                          ("Circle" or the "Company") 
 
                  Operational Update Oman, Morocco and Namibia 
 
 
Circle Oil Plc (AIM: COP), the international oil and gas exploration, 
development and production company, is pleased to announce the following 
operational update in respect of its activities in Oman, Morocco and Namibia. 
 
Oman Block 49 
 
Mobilisation for the 3D seismic survey in Block 49 onshore Oman has commenced. 
The survey, planned to cover some 900 square kilometres, is being undertaken by 
Sinopec and is scheduled to last approximately four months from commencement of 
acquisition. HSE start up audit and source testing is expected to begin later 
this week with actual field acquisition commencing after crew acceptance. The 
data acquired will be field QC processed before full 3D processing in the UK. 
 
Oman Block 52 
 
Tender documents have been prepared for the acquisition of 5,000 kilometres of 
commitment 2D marine seismic. The areas to be surveyed have been delineated and 
are aimed at providing the necessary data to firm up multiple leads which have 
been already identified and mapped from the first phase of 2D seismic.  Actual 
acquisition timing will be dependant on the outcome of the tender which will 
confirm the availability of marine acquisition boats for the survey. 
 
Morocco 
 
The Sebou Permit continues to experience abnormally high amounts of winter 
rainfall and consequently severe flooding has occurred over the permit. At the 
present time a large portion of the licence area is flooded and civil 
engineering works in preparation for the forthcoming 2010 drilling campaign 
remain suspended. It is difficult to predict when work will re-commence. In view 
of the foregoing it is probable that drilling will not begin until the end of 
the first half.  An update will be provided once it is possible to assess the 
situation with more certainty. 
 
Pre-planning for the new pipeline has, nonetheless, continued and the required 
construction materials have been tendered for.  The contract has been awarded 
for the supply of over 60 kilometres of 6-inch pipeline. Approvals procedures 
continue in parallel. 
 
Production over the last three months has been largely maintained at 1.5 mmscfd 
due to the ability to switch production between wells, but even with this 
ability there has been some periodic minor disturbance to production. 
 
Namibia 
 
Circle is still awaiting payment from Petro-Holland Ltd for the Owambo Basin 
Permit farm-in as per the agreement signed in September 2008. The protracted 
delay has been due to Petro-Holland finalising their internal financial 
arrangements. 
 
Commenting, David Hough, CEO of Circle, said: 
 
"I am pleased with our progress in Oman and in particular that the 3D seismic 
programme in Block 49 is now effectively underway.  Success in Oman could 
provide Circle with some real 'company making' opportunities. While we planned 
for some flooding delay to drilling in Morocco, the weather conditions have been 
much more severe than anticipated.  Nonetheless production has been all but 
maintained and I look forward to getting the drilling programme underway once 
the flood waters have receded." 
 
 
Glossary 
 
mmscfd - Millions standard cubic feet per day 
 
 
 
For further information contact: 
 
Circle Oil Plc ([phone] 
David Hough, CEO 
 
Evolution Securities ([phone]) 
Rob Collins 
Chris Sim 
Neil Elliot 
 
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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