TIDMCOP
RNS Number : 8804Z
Circle Oil PLC
22 March 2012
22 March 2012
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 Field
("AASE") and the Geyad field.
AASE-11X ST 1 Well
Appraisal well AASE-11X was spudded on 5 February 2012 and is
located on the north western flank of the AASE field, updip of the
AASE-7X water injector. The well's objective was to appraise both
the Shagar and Rahmi sands for injection/production in that
location. The well reached a TD of 9,600 ft MD before being
sidetracked to the south for geological reasons. The AASE-11X ST1
well was then successfully drilled to a total depth of 11,160 ft MD
into the base Kareem. The well encountered 42 ft of net pay in the
Kareem Shagar sand and 22 ft in the underlying Rahmi sand with oil
bearing sands present to the base of the reservoir. Completion of
the well as a Shagar sand producer is underway and testing is
planned to be conducted shortly. The results will be announced in
due course.
AASE-12X Well
Following the successful completion of the AASE-11X ST1 well,
the rig will be mobilised to drill the appraisal well AASE-12X,
located in the south central part of the AASE field, targeted as an
infill producer, located midway between AASE-5X and Al Ola-1
wells.
Production
Production from the AASE and Geyad fields averaged approximately
7,400 bopd (gross) through February 2012. The southern part of the
AASE field was granted a development lease for the Al Ola area in
February and the total production rate of the fields, including the
Al Ola-1 and Al Ola-2 wells, has increased to a current level of
8,340 bopd. Cumulative production from the NW Gemsa Concession has
now exceeded 7.5 million barrels of 42 degree API Crude oil.
Water Injection
The AASE-10X well has been successfully completed for water
injection in the Rahmi sands which was the original objective for
the well, following poor results of testing for Rahmi oil
production. The current injection rate for this well is 2,000 bwpd
out of a daily total for the AASE field of 16,000 bwpd. A
cumulative injection of 1.9 MMbw has been reached for the three
water injectors in the AASE field from start up in September 2011.
Water injection for Geyad-5X in the Geyad field is currently at a
rate of 5,531 bwpd, with a cumulative injection of 0.3 MMbw, since
injection start up in January 2012.
Pressure support in response to the water injection programme
has been observed in updip producers and continues to be
monitored.
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
"Circle is very pleased that the AASE-11X ST1 well has found
good oil bearing reservoir sands in both the Shagar and Rahmi. This
further proves up the north western flank of the AASE field. The
rig will shortly be moved to drill the AASE-12X well, which is
intended as an infill producer for the AASE field as part of the
overall plan to improve the productivity of the NW Gemsa
accumulations."
Glossary
bopd barrels of oil per day
bwpd barrels of water per day
ft Feet
MD Measured Depth
MMbw Millions of barrels of water
TD Target Depth
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
Richard Hail
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 two 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 programme in Block 49 onshore.
Circle'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 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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