Operating Update Egypt (8645K)
22 July 2011 - 4:00PM
UK Regulatory
TIDMCOP
RNS Number : 8645K
Circle Oil PLC
22 July 2011
22 July 2011
CIRCLE OIL PLC
("Circle" or the "Company")
Operating Update Egypt
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce the following update regarding the Al Amir SE-8X water
injection well together with details on the imminent drilling of
Geyad-5X, a water injector, to support production in the Geyad
Field.
Al Amir SE-8X
Al Amir SE-8X, located to the south-west of the Al Amir SE-1X ST
discovery well in the Al Amir Development Lease, was drilled to
10,750 ft MD in the Upper Rudeis. The main objective for this well
was to appraise the Shagar and Rahmi sandstones of the Kareem
Formation in a downdip location and to provide water injection to
support oil production from the updip Al Amir SE field wells.The
Shagar sands were encountered from 10,329 to 10,353 ft MD with 24
ft MD of net reservoir and up to 15% porosity. The Rahmi sands were
encountered from 10,404 to 10,432 ft MD with 8 ft MD of net
reservoir and up to 10% porosity. Both sands were found to be water
bearing, below the field oil-water contact. Interpretation of
formation pressure test results from both sands indicates
communication with the updip producers and good potential for
successful water injection. The well has been completed as an
injector in the Rahmi sands, with the option to add the Shagar
injection under a rigless operation at a later date.
Geyad-5X
The rig has now been mobilised to drill the water injector well
Geyad-5X, located on the western flank of the Geyad field, downdip
of the Geyad - 3X and Geyad-1XST producers. The well is planned to
appraise both the Shagar and Rahmi sands for injection.
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
NW Gemsa Concession partners include: Vegas Oil and Gas (50%
interest and operator); Circle Oil Plc (40% interest); and Sea
Dragon Energy (10% interest).
Prof Chris Green, CEO, said
"I am pleased to report another successful result as the
partnership's plans in NW Gemsa remain on schedule. The rig now has
now moved to start drilling the first injector well on the Geyad
field as part of the development plan to increase production rates
for the medium and long term."
Glossary
MD Measured Depth
ft Feet
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Professor Chris Green, Chief Executive
Officer of Circle Oil Plc, an explorationist and geophysicist with
over thirty years oil & gas industry experience, and Dr Stuart
Harker, VP Geology, also with over 30 years experience, are the
qualified persons as defined in the London Stock Exchange's
Guidance Note for Mining and Oil and Gas companies, who have
reviewed and approved the technical information contained in this
announcement. Professor Green and Dr Harker have relied on primary
information supplied by the operator in carrying out their
review.
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Evolution Securities (+44 20 7071 4300)
Chris Sim
Neil Elliot
Fox-Davies Capital (+44 20 3463 5010)
Daniel Fox-Davies
Philip Davies
David Porter
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Kate Lehane
Murray Consultants (+353 1 498 0300)
Joe Murray
Joe Heron
Notes to Editors
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 and Egypt 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 and the Zeit Bay area of Egypt. Circle also has the largest
licence holding of any company in Oman. In addition to its
prospective Block 52 offshore, Circle also has an ongoing
exploration program in Block 49 onshore.
Circle'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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