Operating Update Egypt (2761N)
August 31 2011 - 1:01AM
UK Regulatory
TIDMCOP
RNS Number : 2761N
Circle Oil PLC
31 August 2011
31 August 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 Geyad-5X water
injection well drilled to support production in the Geyad
Field.
Geyad-5X
Geyad-5X, located to the south-west of the field and downdip of
the Geyad-1X ST discovery well in the Geyad Development Lease, was
drilled to 7,350 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 Geyad field
wells. The Shagar sands were encountered with 15 ft MD of net
reservoir, an average porosity of 14% and perforations made between
6,510 and 6,525 ft MD. The Rahmi sands were encountered with 15 ft
MD of net reservoir, an average of 13% porosity and perforations
made between 6,583 and 6,899 ft MD. As expected, below the field
oil-water contact both sands were found to be water bearing. The
well has been completed as an injector.
The rig has now been mobilised to drill the water injector well
Al Ola-2, located on the south-eastern flank of the Al Amir SE
field, downdip of the Al Ola-1X producer. The well is planned to
appraise both the Shagar and Rahmi sands for injection in that
location.
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 continue on schedule. The rig will
now move to start drilling the Al Ola-2 injector well situated on
the Al Amir SE field. The water injection programme is part of the
continuing 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
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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