COP Circle Oil

TIDMCOP

RNS Number : 6291C

Circle Oil PLC

03 May 2012

3 May 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 ST 1 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 and 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. The completion for the well as a Shagar sand producer has been installed and the Shagar zone perforated in the interval 10,730-10,780 ft and flowed oil and gas on test at an average rate of 3,500 bopd and 2.64 MMscf/d respectively, on a 64/64" choke. The well has now been placed on production at an initial flow rate of 1,635 bopd using a 32/64" choke.

AASE-12X Well

Following the successful completion of the AASE-11X ST1 well, the rig has been mobilised to drill the appraisal well AASE-12X, which is located in the south central part of the AASE field. The well is expected to be an infill Kareem sand producer, located midway between AASE-5X and Al Ola-1 wells.The well was spudded on 25 April 2012 and is currently drilling ahead at 2,000 ft in the Zeit Formation towards a total depth of 9,800 ft MD in the Upper Rudeis.

Production

Production from the AASE and Geyad fields averaged 8,264 bopd (gross) through March 2012 and following connection of the latest well AASE-11X ST 1, has risen to 10,000 bopd. Cumulative production from the NW Gemsa Concession has now exceeded 7.9 million barrels of 42 degree API Crude oil.

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 been completed as a Shagar sand producer with good initial flow. This well result further proves up the north western flank of the AASE field. The rig has now being 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 
  ft     feet 
 
   MD                                       Measured depth 
   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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