Circle Oil PLC Operating Update Morocco (7108M)
May 11 2015 - 2:00AM
UK Regulatory
TIDMCOP
RNS Number : 7108M
Circle Oil PLC
11 May 2015
11 May 2015
Circle Oil Plc
("Circle" or the "Company")
Operating Update Morocco
Morocco Sebou Permit - Discovery Exploration Well SAH-W1
Circle Oil Plc (AIM: COP), the Middle East and North Africa
focused oil and gas exploration, development and production
company, is pleased to announce the preliminary results of testing
of the well SAH-W1 in the Sebou Permit, onshore Morocco.
The well is located within the western-central area of the Sebou
Permit, about 3.2 kilometres to the south-west of the main gas
gathering station. The well was drilled to a TD of 1,263 metres MD
in June 2014, with gas shows encountered at different levels within
the target Guebbas sands. As is normal practice, Circle will
produce from the lowermost Guebbas zone followed by the Main
Guebbas zone sequentially from the bottom up, where the highest
pressure is present. The lowermost Guebbas zone has 3.6 metres of
net pay and the test over this interval flowed at a sustained rate
of 4.94 MMscf/d on a 24/64" choke during a period of 5 hours.
The rig has been released from SAH-W1 and is being transported
to the Lalla Mimouna concession to drill Circle's first well on
this permit, LAM-1. This will be the fifth well of the current
drilling campaign and is located in the central part of Lalla
Mimouna Nord on the east-west trending Anasba Ridge, within the
existing 3D seismic area. The target of the LAM-1 well is for
Miocene gas-bearing sands, similar to the Sebou discoveries made
previously by Circle. The primary target sands are prognosed at a
depth of 1,231 metres MD and the TD of the well at 1,521 metres MD.
Further wells in Lalla Mimouna and Sebou permits will follow to
complete the current programme.
Commenting on the results of the SAH-W1 well Steve Jenkins,
Chairman, said:
"We are delighted with the results of the SAH-W1 well test. This
was the first well of our third drilling campaign, drilled with our
partner ONHYM in the Sebou permit and is coupled with our drilling
programme in the Lalla Mimouna permit. We believe that this well
has the potential to add significant volumes to our reserves for
gas production and at rates not subject to price fluctuation due to
fixed price contracts."
Glossary
MD Measured Depth
MMscf/d Millions of standard cubic feet of gas per
day
TD Total Depth
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
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0320)
Joe Heron
Pat Walsh
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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