Circle Oil PLC Operating Update Morocco (3870A)
December 22 2014 - 1:00AM
UK Regulatory
TIDMCOP
RNS Number : 3870A
Circle Oil PLC
22 December 2014
22 December 2014
Circle Oil Plc
("Circle" or the "Company")
Operating Update Morocco
Morocco Sebou Permit - Discovery Exploration Well KSR-12
Circle Oil Plc (AIM: COP), the Middle East and North Africa
focused oil and gas exploration, development and production
company, is pleased to announce a significant gas discovery
following the preliminary results of drilling of the well KSR-12 in
the Sebou Permit, onshore Morocco.
The well is located within the central area of the Sebou Permit,
about 1.2 kilometres to the south-west of the KSR gas gathering
station. The well was drilled to a TD of 1,980 metres MD. Gas
shows, which were confirmed by wireline logging, were encountered
at two different levels within the objective Hoot sands.
The net gas pay encountered in the well from wireline log
analysis is 19.5 metres in the main target Intra Hoot sands and 1
metre in the Upper Hoot. This is greater than pre-drill sand
thickness expectation. Pressure testing showed that the Upper and
Intra Hoot sands are not connected to the Hoot sands in the other
nearby KSR wells. The seven inch liner was run and cemented and the
first test over the primary target Main Hoot sands flowed at a
sustained rate of 8.09MMscf/d on a 20/64" choke over 8 hours with
no decrease in well head pressure. The second test over the Upper
Hoot sands produced at a stabilised rate of 2.32MMscf/d on a
9/64"choke over 10 hours. The well will be completed for future
production in the Main Hoot sands and the Upper Hoot will be
completed for production once the Main Hoot gas sands have been
depleted.
A new rig has been transported to Morocco but due to recent
heavy rains affecting access roads into the drill site area in
Lalla Mimouna, where drilling platforms have been prepared, it
cannot currently be delivered there. In order to avoid delay, the
drilling sequence is being modified and the rig will now be
transported to the KAB-1 bis location in the Sebou permit, where
access is presently possible. KAB-1 bis is a re-drill of the KAB-1
well, drilled in 2011 located downthrown tothe NW-SE trending
N'zala Fault in the north-western area of the Sebou 3D survey. The
original KAB-1 well encountered swelling clays that compromised the
integrity of the borehole and the well had to be abandoned prior to
wireline logging and testing. However, the well encountered good
gas shows at the target level, a Miocene top Guebbas sand in a
structurally downthrown location to the Kabarta Nose, north-east of
the KSR-3, -6, -7 and -9 wells. KAB-1 bis has the same target with
an adapted mud system to minimise drilling problems in a slightly
more updip location. The primary target Guebbas sands are prognosed
at a depth of 1,272 metres MD and the TD of the well at 1,360
metres MD.
Whilst further modifications to the drilling sequence may be
required due to weather and ground conditions, the rig is scheduled
to move to drill Circle's first wells on the Lalla Mimouna permit.
The first well of this campaign, LAM-1, is located in the central
part of Lalla Mimouna Nord on the East-West trending Anasba Ridge,
within the existing 3D seismic area. The target of the LAM-1 well
is for Miocene gas-bearing sands, similar to the Sebou discoveries
made previously by Circle. The primary target sands are prognosed
at a depth of 1,130 metres MD and the TD of the well at 1,431
metres MD. Further wells in the Lalla Mimouna and Sebou permits
will follow to complete the current programme. Updates on these
wells will be provided in due course.
Commenting on the results of the KSR-12 well Prof. Chris Green,
CEO, said:
"We are delighted with the results of the KSR-12 well, which has
found the thickest gas sand interval to date of our Sebou wells. We
believe that this well will add significant volumes to our reserves
for potential gas production and at rates not subject to oil price
fluctuation. This is the third well of a six well programme to be
drilled with our partner ONHYM in the Sebou permit and is coupled
with another six well programme in the Lalla Mimouna permit."
Glossary
MD Measured Depth
MMscf/d Millions of standard cubic feet
of gas per day
TD Total Depth
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)
Clayton Bush
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0320)
Joe Murray
Joe Heron
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. Dr. Harker holds a BSc (Hons) in
Geology from the University of London (UK) and an MSc and PhD from
the University of Saskatchewan, Canada. He is also a Fellow of the
Geological Society of London and a Chartered Geologist.
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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