Circle Oil PLC Oman Operating Update (4537G)
04 March 2015 - 6:00PM
UK Regulatory
TIDMCOP
RNS Number : 4537G
Circle Oil PLC
04 March 2015
4 March 2015
Circle Oil Plc
("Circle" or the "Company")
Shisr-1 well Block 49, Onshore Oman
Circle Oil Plc (AIM: COP), the Middle East and North Africa
focused oil and gas exploration, development and production
company, provides the following information on the Company's
activities in Oman.
Oman Block 49 -Exploration Well Shisr-1
Further to the Financial and Operating update published on 12
February 2015, in which the Company announced the start-up for
drilling of the well Shisr-1 in Block 49, onshore Southern Oman, a
decision has now been taken to plug and abandon the well (which
reached a measured depth of 1,650 metres) due to drilling
difficulties, which have not been encountered to the same extent in
previous wells in the area, no hydrocarbons were found. The primary
target had been the Hasirah sands prognosed at a depth of 1,890
metres.
The Bottom Hole Assembly ("BHA") became stuck below the 95/8
inch casing shoe which had been set at 819 metres. Multiple
attempts were made to remove the BHA but these proved unsuccessful.
Drilling information, confirmed by the Company's independent
drilling advisor, suggests that the main problem zone is
immediately below the casing shoe and further attempts to deepen or
sidetrack this borehole are inadvisable.
The Ministry of Oil and Gas in Oman have given their approval to
plug and abandon the well. As has been stated previously,
management viewed this well as a high risk commitment well with a
low probability of success.
Chairman Steve Jenkins commented,
"This well was always deemed as high risk and the unexpected and
disappointing conditions experienced in this well, designed as a
slim-hole stratigraphic test, have been a challenge to our drilling
team."
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Steve Jenkins, Chairman
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)
Clayton Bush
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0300)
Joe Heron
Pat Walsh
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Dr Stuart Harker, VP Geology, with over 40
years 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. Dr. Harker holds a BSc (Hons) in
Geology from the University of London (UK) and an MSc and PhD from
the University of Saskatchewan, Canada. He is also a Fellow of the
Geological Society of London and a Chartered Geologist.
Glossary
Bottom Hole Assembly - the portion of the drilling assembly
below the drill pipe
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, Oman, and Egypt with a combination
of producing assets, low-risk, near-term production opportunities,
and significant upside exploration potential. The Company listed on
AIM in October 2004.
Internationally, the Company has continued to expand its
portfolio over the past years and now has assets in the Rharb
Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the
Mahdia Permit offshore Tunisia, and the Zeit Bay area of Egypt.
Circle also has the largest licensed acreage of any company in Oman
with 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 opt to use its own
expertise to appraise reserves and bring assets into production.
Through either route the objective would be generation of 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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