11th Nov 2014 10:26
LONDON (Alliance News) - Circle Oil PLC Tuesday said its production across its assets continues in line with expectations as it announced its chief executive is to resign.
Chief Executive Chris Green will remain at the company until a suitable replacement has been found, stating the time is right to stand down after eight years at the company, four of which as chief executive.
In the same statement, the company said production from its assets in Morocco continue to run in line with expectations at 7 million standard cubic feet of gas per day and said it is waiting for the results from its third well in the country.
It also said it may change its drilling targets during late autumn and winter to ones based on higher land in the Lalla Mimouna area dependent on weather conditions, compared to the targets identified in the lower Sebou area.
Production in Egypt is varying between 9,300 barrels of oil per day and 9,700 barrels of oil per day, and gas production is currently between 10 million standard cubic feet and 11 million standard cubic feet of gas per day, Circle said. Variations in production continue to be a function of individual well performance and the effectiveness of the ongoing workover programmes, it said in a statement.
Following the completion of the Mahdia well in Tunisia, the company said that due to various delays and technical challenges, the cost of the well is at the top end of its expectations. However, as a result of its existing financial resources and operational cashflow, this additional cost will not impact the company's operational plans going forward, said Circle.
The company is in discussions with the Tunisian authorities to extend the permit for a further three years to allow it to push forward talks with a number of companies which are interested in participating in a farm out process, said Circle.
Circle are set to begin drilling block 49 in Oman after completing local infrastructure and finalising the necessary contracts. The Shisr-1 well is targeting an estimated resource of 14 million barrels of oil.
"The forthcoming Oman Block 49 well will provide added interest, however, this is a high risk commitment well and we would be delighted if it was successful," said Chairman Steve Jenkins.
Circle Oil shares were down 0.2% to 17.10 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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