COP Circle Oil

TIDMCOP

RNS Number : 0770X

Circle Oil PLC

26 August 2015

26 August 2015

Circle Oil plc

("Circle Oil" or the "Company")

Operating Update Morocco

Sebou Permit - KSS-A Well Update

Circle Oil plc (AIM: COP), the North African focused oil and gas exploration, development and production company, provides the following information on the progress of the Ksiri South (KSS-A) exploration well on the Sebou permit, onshore Morocco.

The KSS-A well was an exploration well targeting two objectives in the Miocene Gaddari sands. The well encountered unexpected lithology above the primary objectives and as a result, the well has been plugged and abandoned. The technical data from the well is being assessed in line with available seismic with a view to assessing further drilling in this area at a later date.

The rig will now be mobilised to drill the Ksiri West (KSR-A) exploration well in the Sebou permit in the Rharb Basin. This well is targeting Miocene Hoot sandstones in a structurally downthrown location which has been penetrated successfully by the KSR-8, KSR-10, KSR-11 and KSR-12 wells.

The principal target is in the hanging wall of the Ksiri West fault sequence. There are channelised sand bodies within the Main Hoot sequence which display a significant seismic (low) amplitude anomaly found to be caused by gas-filled porous sands in several nearby wells. The anomalous amplitude event is interpreted to be at approximately 1,789m TVDSS, 30m higher than the equivalent target sand found in KSR-8 across the Ksiri West fault. A shallower, smaller, secondary target is recognised in Miocene Guebbas sands at 1,303mTVDSS. The well has a proposed TD of 1860m TVDSS.

Depending on drilling progress rates, initial results of the well could be available in approximately 30-40 days.

Commenting on the results of the KSS-A well Mitch Flegg, CEO, said:

"The drilling conditions at KSS-A proved challenging, and as a result it was decided to plug and abandon the well in order to allow time for a new well design to be engineered. This was the most cost-effective approach and it will allow drilling of the KSR-A well to commence ahead of schedule. Although we are disappointed to have not reached the prognosed TD of KSS-A, we have minimised any cost implications by quickly moving on to the next well in the campaign."

The Sebou permit is a partnership between Circle Oil Maroc Limited (75%) and ONHYM (Office National des Hydrocarbures et des Mines) (25%).

 
Glossary 
TD      Total Depth 
 TVDSS   True Vertical Depth sub-sea 
 

For further information contact:

Circle Oil Plc (+44 20 7638 9571)

Mitch Flegg, Chief Executive Officer

Investec (+44 20 7597 4000)

Chris Sim

George Price

James Rudd

Citigate Dewe Rogerson (+44 20 7638 9571)

Martin Jackson

Shabnam Bashir

Murray Consultants (+353 1 498 0300)

Joe Heron (+353 87 6909735)

Pat Walsh

In accordance with the guidelines of the AIM Market of the London Stock Exchange the technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Executive Officer of Circle Oil Plc. Mitch Flegg, who has over 33 years of experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies,

Mitch Flegg holds a BSc in Physics from Birmingham University and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).

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, 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 assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW Gemsa permit in Zeit Bay area of Egypt.

Circle Oil'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 Oil 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 Oil 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

MSCPGUGCRUPAGQA

(END) Dow Jones Newswires

August 26, 2015 02:00 ET (06:00 GMT)

Circle Oil (LSE:COP)
Historical Stock Chart
From Mar 2024 to Apr 2024

Circle Oil (LSE:COP)
Historical Stock Chart
From Apr 2023 to Apr 2024