COP Circle Oil

TIDMCOP

RNS Number : 4582G

Circle Oil PLC

05 August 2016

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

5 August 2016

CIRCLE OIL PLC

("Circle" or the "Company")

Financial Update

Further to the announcement of 14 July 2016, Circle Oil plc (AIM:COP) the international oil and gas exploration, development and production company, is pleased to announce that International Finance Corporation ("IFC") has agreed to further extend the suspension of the December 2015 redetermination and any repayments due under its Reserve Based Lending ("RBL") facility until 2 September 2016. In addition, IFC has indicated its willingness to consider further waivers as may be required to continue the Strategic Review process based on circumstances applying at the time of any application.

Notwithstanding the waiver of the redetermination, under the terms of the RBL facility the Company was scheduled to make an interest payment on 29 July 2016. In the light of the current financial position of the Company, the IFC have agreed to the deferral of this interest payment until 2 September 2016. A condition of this deferral is that the interest will be repaid if the Company receives significantly better than anticipated amounts from the Egyptian General Petroleum Corporation ("EGPC").

As noted, most recently in the announcement of 14 July 2016, the Company's financial position remains under significant pressure. US dollar payments from EGPC have continued to be unpredictable and to date there has not been a sustained improvement in the cash flow profile of the Company. However, as a result of the deferral of this payment, the Company is in a position to discharge its financial obligations during the period of the waiver and will continue to explore options for additional funding during this period in order to be able to discharge its financial obligations thereafter.

The Strategic Review process remains ongoing and further updates will be provided as appropriate.

For further information contact:

Circle Oil plc (+44 20 7182 4913)

Mitch Flegg, CEO

Investec (+44 20 7597 5970)

Chris Sim

George Price

James Rudd

Jonathan Wynn

Murray (+353 1 498 0300)

Joe Heron

Pat Walsh

This information is provided by RNS

The company news service from the London Stock Exchange

END

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