TIDMCOP
RNS Number : 6381D
Circle Oil PLC
28 October 2015
Circle Oil plc
28 October 2015
Operating Update Morocco
-- CGD-13 exploration well discovers gas - 5.9m of net pay
-- Stabilised test rates confirm gas flowed at 4.45MMcf/d through a 28/64" choke
-- 2014 / 2015 Moroccan campaign ends with further success -
CGD-13 is the sixth successful discovery well of campaign
-- Drilling costs reduced by 30% per well over life of campaign
-- Interpretation of 2014 / 15 campaign will help design of new
Moroccan drilling campaign in 2016
CIRCLE OIL PLC
("Circle" or the "Company")
Circle Oil plc (AIM: COP), the North African focused oil and gas
exploration, development and production company, is pleased to
announce a discovery at the Caid El Gaddari-13 (CGD-13) exploration
well on the Sebou Permit, onshore Morocco.
The CGD-13 well spudded on 8 October and reached a TD of 871m on
17 October, significantly ahead of schedule. The target consisted
of gas-bearing Miocene sandstones in a structurally elevated
position east of the CGD-1 well and west of the CGD-9 well. The
well has encountered approximately 5.9m of net pay and an interval
of 4.7m was perforated between 791m and 812m.
Testing has been completed and the well has flowed at a rate of
4.45MMcf/d through a 28/64" choke.
The successful well is located 320m northwest of the closest
tie-in point on the 75% Circle owned 55km pipeline to Kenitra. The
well will be brought into production and produced through the
pipeline to Circle customers in Kenitra.
A Successful Morocco Campaign
This discovery concludes the 2014/15 drilling campaign for
Circle in Morocco. The successful campaign has seen ten wells
drilled in total, seven wells in Sebou and three in Lalla Mimouna.
In total the campaign recorded six new discoveries, five at the
Sebou permit and one at the Lalla Mimouna permit. The campaign
confirms our understanding of the Sebou permit and has proved the
presence of gas at the Lalla Mimouna permit.
Improving operational efficiency has been a key goal for Circle
over the last six months. Drilling costs have been reduced by 30%
per well during the course of the campaign.
The Circle geological team will review and integrate the well
data from this campaign when planning the next campaign in Morocco,
initially scheduled for late 2016.
Circle continues to enjoy a strong position in Morocco and gas
prices received are unaffected by the turmoil in global markets for
oil and gas.
Circle Oil CEO, Mitch Flegg said
"We are delighted with the result of CGD-13. This is the latest
success in what has been an excellent campaign. In addition to
drilling six successful wells and discovering additional reserves
of gas, we have significantly deepened our understanding of both
our Moroccan permits. This will provide a strong foundation for the
future development of our Moroccan business."
"We would like to thank our partner, ONHYM, for their continued
support in the development of our Moroccan permits. Morocco remains
at the core of Circle's business and we are looking forward to
developing our next drilling campaign."
Glossary
TD Total Depth
MMcf/d Million 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
MSCPGGQWUUPAPUM
(END) Dow Jones Newswires
October 28, 2015 03:00 ET (07:00 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
