Operating Update Egypt (1410F)
April 19 2011 - 1:01AM
UK Regulatory
TIDMCOP
RNS Number : 1410F
Circle Oil PLC
19 April 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 an update regarding the Geyad-3C appraisal/development
well together with details on the future development of the NW
Gemsa Concession.
Geyad-3C Update
Geyad-3C, located to the south-east of the Geyad-1X ST well in
the Geyad Development Lease, is planned to be drilled to a total
depth ("TD") of 5,911 ft measured depth ("MD") in the Upper Rudeis.
The well is currently rigging up and preparing to commence
drilling. The main objective for this well is to appraise and bring
into production the oil bearing Shagar and Rahmi sandstones of the
Kareem Formation. In the Geyad-1X ST well both zones were tested in
May 2009 at a combined sustained rate of 2,809 bopd and 3.04
MMscf/d of gas from the Rahmi sandstones on a 64/64" choke and the
well was put on production. In Geyad-2 ST, the Shagar sands were
tested at a sustained rate of 3,850 bopd and 4.62 MMscf/d of gas on
a 48/64" choke and the well was put on production. Secondary
objectives of the Geyad 3-C well are to penetrate and evaluate the
hydrocarbon potential of the overlying South Gharib and Belayim
formations.
NW Gemsa Concession
Following the drilling of Geyad-3C, further intensive
exploration, appraisal and development drilling is planned over the
next eighteen months. A programme of water injection wells will be
drilled, as required, to support oil production in both the Al Amir
SE and Geyad fields.
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).
Glossary
ft Feet
bopd Barrels of oil per day
MMscf/d Million standard cubic feet per day
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 has
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 7936 5230)
Daniel Fox-Davies
Philip Davies
David Porter
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
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 highly
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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