Circle Oil PLC Operating Update Morocco (4088H)
May 19 2014 - 1:01AM
UK Regulatory
TIDMCOP
RNS Number : 4088H
Circle Oil PLC
19 May 2014
19 May 2014
Circle Oil Plc
("Circle" or the "Company")
Operating Update Morocco
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce the following operating update.
Sebou and Lalla Mimouna Permits
The third drilling campaign in the Sebou permit and first
campaign in the Lalla Mimouna permit has commenced with the spud of
the SAH-W1 well in the Sebou permit.
The work programme initially includes the drilling of three
wells in the Sebou permit followed by drilling in the Lalla Mimouna
permit. In all, it is planned to drill 12 separate targets and
although these have been chosen and approved internally the final
locations of some wells may be amended in the light of drilling
results. There is a large portfolio of prospects from which to
choose, if alternative locations are required.
The 12 locations initially chosen are targeting resources of
approximately GIIP of 25 bcf and the first well, SAH-W1, is
targeting a dipping three way fault bounded sand lens with TD at
1,225 metres MD and primary targets in the Guebbas Formation at
1,060 and 1,160 metres MD. The Company's pre-drill estimates are
for GIIP of 1.85 bcf and 1.0 bcf respectively for the two
targets.
It is anticipated that the drilling campaign will, at times,
employ multiple drilling rigs in order to progress the campaign and
provide as much continuous progress as possible.
Both the Sebou and Lalla Mimouna permits are a partnership
between Circle Oil Morocco Ltd (75%) and ONHYM (Office Nationale de
Hydrocarbures et des Mines) (25%).
The concession agreements include the right of conversion to a
production licence in the event of commercial discoveries.
Production in Sebou has continued throughout H1 2014 at 6.8 - 7
MMscf/d gross.
Prof Chris Green, CEO, said:
"Circle is very pleased to announce the start of our third
drilling campaign in Morocco. We have previously enjoyed
significant drilling success in the Sebou permit and our technical
team have worked hard to maximise opportunities and ensure this
success continues. Reserve replacement and enhancement is the key
to maintaining and uplifting our revenues in what we regard as a
core country to invest in for the future. We sincerely thank our
partner ONHYM for their continuing support and assistance as we
start this third drilling campaign."
Glossary
bcf Billion cubic feet
GIIP Gas initially in Place
MD Measured Depth
MMscf/d Millions of standard cubic feet of gas
per day
TD Target Depth
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.
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)
Simon Atkinson
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0320)
Joe Murray
Joe Heron
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 low-risk, near-term production, 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. In addition to its prospective Block 52 offshore, Circle 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 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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