Circle Oil PLC Extension of Permit for Mahdia Licence in Tunisia (4256W)
19 August 2015 - 4:00PM
UK Regulatory
TIDMCOP
RNS Number : 4256W
Circle Oil PLC
19 August 2015
19 August 2015
Circle Oil plc
("Circle" or the "Company")
Extension of Permit for Mahdia Licence in Tunisia
Circle Oil Plc (AIM: COP), the North African focused oil and gas
exploration, development and production company, is pleased to
announce that the Tunisian Authority has approved the application
to renew the exploration permit on its Mahdia block the ("Permit").
The Permit is being extended for three years until 19 January
2018(1) and Circle Oil, as operator, currently has a 100% working
interest in the Permit.
The Mahdia permit offshore Tunisia covers an area of 3,024km(2)
, and contains the El Mediouni structure which was drilled by
Circle's EMD-1 well in August 2014. As announced on 26 August 2014,
the well encountered notable oil shows in the Ketatna
(Oligo-Miocene) carbonates. While mud losses prevented log data
acquisition, Circle considers the shows to indicate a significant
resource from the structure. The Permit also contains a number of
similar prospects which the Company look forward to exploring in
further detail.
The extension of the licence carries with it a one exploration
well and one appraisal well commitment and a requirement to acquire
300km(2) of 3D seismic.
Circle outlined its strategy for the Mahdia licence at its
recent AGM. Given its material working interest the Company intends
to select suitable partners with whom it can evaluate and develop
the El Mediouni structure and other prospects on the permit. Circle
has already had initial expressions of interest from a number of
oil and gas companies with the financial strength and industry
experience to make them suitable joint venture partners. The
confirmation of this extension of the Permit will give interested
parties greater certainty in making a formal approach and should
greatly assist the Company in concluding an agreement.
This farm out strategy will minimise Circle's financial
commitment, reduce risk, and still allow the Company to benefit
from the potential of the discovery. This approach is fully
consistent with Circle's strategy to grow the Company in a
sustainable manner and deliver value to shareholders in a low
oil-price environment.
Mitch Flegg, CEO Circle Oil comments;
"Circle Oil wishes to place on record our thanks to the Tunisian
Consultative Committee on Hydrocarbons. We look forward to
continuing to work with them with the aim of delivering a project
which would bring considerable benefit to the people of Tunisia and
to Circle. We will now move forward with the process of identifying
a suitable partner or partners to work with us to realise the value
of this exciting discovery."
ENDS
(1) The licence extension has been granted from January 20(th)
2015 until January 19(th) 2018.
For further information contact:
Circle Oil plc (+44 20 7638 9571)
Mitch Flegg, Chief Executive Officer
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
CitigateDewe 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 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 33
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'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,
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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