Circle Oil PLC Operating Update Morocco (0274C)
October 13 2015 - 2:00AM
UK Regulatory
TIDMCOP
RNS Number : 0274C
Circle Oil PLC
13 October 2015
13 October 2015
Circle Oil plc
("Circle Oil" or the "Company")
Operating Update Morocco
Circle Oil plc (AIM: COP), the North African focused oil and gas
exploration, development and production company, is pleased to
provide an update on the progress of the Ksiri West-A (KSR-A)
exploration well on the Sebou Permit, onshore Morocco.
The KSR-A well, located within the Ksiri Central production
concession of the Sebou permit, reached a TD of 1,890 metres MD on
19 September 2015. Prospective gas zones were logged, and a
completion string installed in preparation for well testing and
then connection to existing production facilities.
The KSR-A well has been tested using a slick-line unit following
the release of the rig. The primary Main Hoot target interval was
perforated from 1,817.9 to 1,826.7 metres MD and flowed gas at a
maximum rate of 8.0MMscf/d on a 24/64" choke.
The well will be tied back to the 75% owned Circle Oil pipeline
from Sebou to the industrial area of Kenitra ready for production.
The well is approximately 680m to the west of KSR-11, for
production line tie-back, and 1.12km west of the Ksiri sub-station.
The production concession has validity through 2024.
The rig has now relocated to drill the Caid El Gaddari-13
(CGD-13) well, the final well of Circle's current drilling
campaign. The location lies within the Gaddari Sud exploitation
concession near the southwestern margin of the Sebou Permit. This
well has a primary target at 780 metres MD and a prognosed TD at
867 metres MD. The target consists of gas-bearing Miocene
sandstones in a structurally elevated position east of the CGD-1
well and west of the CGD-9 well. Depending on progress rates,
initial results could be available in approximately 30 to 40
days.
Commenting on the results of the KSR-A well Mitch Flegg, CEO,
said:
"We are delighted with the results of the KSR-A well. The flow
rates achieved during the well test are at the upper end of our
range of expectations and the well will now be tied in to our
existing infrastructure and put into production as soon as
possible. This gas will be sold at fixed rates which are not
subject to oil price fluctuations."
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
MD Measured Depth
MMscf/d Million Standard Cubic Feet per Day
For further information contact:
Circle Oil plc (+44 20 7148 1799)
Mitch Flegg, Chief Executive Officer
Investec (+44 20 7597 4000)
Chris Sim
George Price
James Rudd
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 34
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
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