Operational Update - Egypt
09 March 2010 - 6:00PM
UK Regulatory
TIDMCOP
RNS Number : 2622I
Circle Oil PLC
09 March 2010
09 March 2010
CIRCLE OIL PLC
("Circle" or the "Company")
Operational Update - Egypt
Successful Production Testing of Al-Amir SE-5 Appraisal Well
Circle Oil Plc (AIM: COP), the international oil and gas exploration,
development and production company, is pleased to announce that the Al-Amir SE-5
appraisal well has been successfully drilled and production tested in the
Al-Amir Development Lease in the onshore North West Gemsa Concession in Egypt.
Circle is delighted to confirm that the Kareem Formation Sandstones under test
flowed 42 API oil at sustained average rates of 6,150 bopd and 6.9 MMscfd of
gas using a 64/64" choke and at 4,300 bopd and 4.9 MMscfd of gas using a 48/64"
choke from the upper of the two identified pay zones. The well, which is the
fourth appraisal well to be drilled in the Al-Amir SE discovery area, has been
completed and production tested and will now be prepared for production.
Log result interpretations indicate that the total net thickness of the two pay
zones is approximately 36.5 feet. The upper pay zone identified in the Kareem
Shagar Sandstone is 19 feet thick. The lower pay zone in the Kareem Rahmi
Sandstone is 17.5 feet. A full technical evaluation of all the results is
underway to assist in development planning and is a precursor to continuing
further assessment of the resource potential. These results will also assist in
delineating the extent of the reservoir in the area. An assessment of reserves
has not yet been completed.
The NW Gemsa concession, containing the Al-Amir and Geyad Development Leases,
covering an area of over 260 square kilometres, lies about 300 kilometres
southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The
concession agreement includes the right of conversion to a production licence of
20 years, plus extensions, in the event of commercial discoveries. The North
West Gemsa Concession partners include: Vegas Oil and Gas (50% interest and
operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).
The drilling rig will now move to commence drilling the Al-Amir SE-6 well which
is the fifth appraisal well in the Al-Amir SE discovery area. The primary target
is again the Kareem Formation. This well is being drilled to delineate the
downdip Oil Water Contact which is required for technical reasons.
Commenting on this latest appraisal well in the NW Gemsa Concession, David
Hough, CEO of Circle, said:
"We are delighted with the successful testing and completion of the Al Amir SE-5
well. The knowledge gained from drilling at this location gives the partners a
better understanding of the extent of the reservoir in this area which may now
be slightly larger than originally mapped. Ongoing drilling will focus on
appraisal and development to enable us to better understand the reservoir
geology of the field and plan for pressure support in the future when required".
Glossary
Bopd - Barrels of oil per day
MMscfd - Millions standard cubic feet per day
In accordance with the guidelines of the AIM Market of the London Stock
Exchange, Professor Chris Green, Chief Operating Officer of Circle Oil plc, an
explorationist and geophysicist with over thirty years oil & gas industry
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. Professor
Green has relied on primary information supplied by the operator in carrying out
his review.
For further information contact:
Circle Oil Plc (+44 20 7638 9571
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden
Fox-Davies Capital (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson / George Cazenove
Murray Consultants (+353 1 498 0320)
Joe Murray
Notes to Editors
Circle Oil Plc
Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development
and production Company with an expanding portfolio of assets in Morocco,
Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term
production and significant exploration upside potential. The Company listed on
AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past
2 years and now has assets in the Rharb Basin, Morocco; the Ras Marmour Permit
in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in
northern Tunisia; the Zeit Bay area of Egypt and the Owambo Basin, Namibia.
Circle also has the largest licence holding of any Company in Oman. In addition
to its highly prospective Block 52 offshore, the Company also has an ongoing
exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses 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 itself 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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