TIDMCOP
RNS Number : 6564W
Circle Oil PLC
11 November 2014
11 November 2014
Circle Oil Plc
("Circle" or the "Company")
Directorate Change and Operating Update
The Board of Circle Oil PLC ("Circle") today announces that
Professor Chris Green, Chief Executive Officer, has given notice of
his intention to step down from the Board and resign from the
Company. Professor Green has agreed with the Board to remain in his
role for a suitable period to ensure a smooth handover to his
successor. The Board is commencing a process to find a new Chief
Executive Officer as well as make additional appointments to the
Board to further broaden its experience and expertise.
The Company also announces the following operating update
Morocco
Drilling continues on the KSR-12 exploration well in the Sebou
Permit. The well has a primary target in the Mid Hoot interval and
a secondary target in the Upper Guebbas. The present planned TD of
the well is 1,980 metres MD. Upon completion of KSR-12, the present
drilling rig will be demobilised and returned to work with another
operator.
Drilling will recommence on the next well in the campaign with
another rig which presently is being mobilised. This rig is the
subject of a long term contract to provide continuous cover and
continuity for drilling the remaining nine wells in the exploration
programme for the Sebou and Lalla Mimouna permits. It will also be
used for any required work-overs and testing programmes. With the
possible onset of late autumnal and early winter rains the next
wells will be drilled on higher ground in the Lalla Mimouna permit
before returning to the Sebou permit.
Production levels continue to run in line with Company
expectations at 7MMscf/d.
Egypt
Production in the NW Gemsa and Geyad permits continues in line
with predicted production profiles with oil production varying
between 9,300 and 9,700 bopd and gas delivery at 10-11 MMscf/d.
Variations in production continue to be a function of individual
well performance and the effectiveness of the ongoing workover
programmes.
The dynamic reservoir model is now in operation to monitor and
model future fluid and gas movements and budgets are being
finalised for 2015 in line with Company expectations.
Receivables levels continue to be in line with previous guidance
and regular payments continue to be received from EGPC. The Company
is presently expecting an additional one-off payment from the
recently announced special tranche allocated to reduce overall oil
company debt in the country.
Tunisia
Following completion of the Mahdia well, reinterpretation of the
3D integrating the well results has been ongoing to produce final
data to permit the commencement of a farm-out for future appraisal
of the Mahdia Block. The Company has already received expressions
of interest from a number of companies to participate in a farm out
process. This will be actively pursued in the coming months. The
Company is in discussion with the Tunisian authorities regarding
the renewal of the permit for a further 3 years.
The Company has also now finalised arrangements with the
contractors for the Mahdia well and is now in a position to update
the market on costs. As a result of various delays and technical
challenges, the cost of the well is at the top end of the Board's
expectations. However, as a result of its existing financial
resources and operational cashflow, this additional cost will not
impact on the Company's operational plans going forward.
The Company awaits further news from the operator regarding the
well to be drilled in the Ras Marmour permit.
Oman
The Company is now actively engaged in preparations to commence
drilling the Block 49 commitment well. Access roads over 20
kilometres in length have been constructed to the main road and the
drilling rig base and mud pits have also been completed. The
drilling rig has been identified and contracts are being finalised.
The Shisr-1 well will target the main prospect at 1,883 metres MD
and a secondary target at 2,669 metres MD with a TD of 2,768 metres
MD. The Company internal estimate of most likely recoverable
resources is 14 MMBO.
Discussions continue regarding the possibility of a farm-out in
the offshore Block 52 and the results of the 2014 2D seismic survey
have been incorporated into the database. The results have
confirmed the presence of the shallow water prospects and added a
fourth prospect to this portfolio.
Steve Jenkins, Chairman, said,
"I would like to thank Chris for his contribution to Circle over
the last eight years, four of those as CEO. Together with the wider
team, Chris's technical knowledge and extensive industry experience
has delivered industry leading results with the drill bit, which
has transformed Circle into its current position as a full cycle
Middle East and Africa focused oil and gas exploration and
production company. I, and the Board, wish him every success for
the future.
Our operations continue and we eagerly await the result of the
third Moroccan well. Whilst we have more wells to drill in the
Sebou area, given the possibility of uncertain weather we will move
to drill targets on higher land in Lalla Mimouna over the late
autumn and winter. The forthcoming Oman Block 49 well will provide
added interest, however, this is a high risk commitment well and we
would be delighted if it was successful. Trading for 2014 presently
continues in line with expectations."
Professor Chris Green commented,
"I am very proud of what we have achieved at Circle over the
last few years. However, after over eight years at Circle I feel
that now is the right time for me to step down. Circle Oil has a
very exciting future ahead. I wish the team well and I am confident
in their abilities to deliver on the Company's significant
potential."
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Steve Jenkins, Chairman
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)
Clayton Bush
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0300)
Joe Murray
Joe Heron
Glossary
MD Measured Depth
MMscf/d Millions of standard cubic feet of gas per day
MMBO Million barrels of oil
TD Total Depth
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Dr Stuart Harker, VP Geology, with over 40
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. Dr. Harker holds a BSc (Hons) in
Geology from the University of London (UK) and an MSc and PhD from
the University of Saskatchewan, Canada. He is also a Fellow of the
Geological Society of London and a Chartered Geologist.
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas
exploration, development and production Company holding a portfolio
of assets in Morocco, Tunisia, Oman, and Egypt with a combination
of low-risk, near-term production, and significant upside
exploration potential. The Company listed on AIM in October
2004.
Internationally, the Company has continued to expand its
portfolio over the past 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 licensed acreage of any company in
Oman. In addition to its prospective Block 52 offshore, Circle 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 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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