19th May 2014 11:53
LONDON (Alliance News) - Circle Oil PLC said Monday it has commenced the third drilling campaign in the Sebou permit and first campaign in the Lalla Mimouna permit with the spud of the SAH-W1 well in the Sebou permit in Morocco.
The international oil and gas exploration, development and production company said the work programme initially includes the drilling of three wells in the Sebou permit followed by drilling in the Lalla Mimouna permit.
The firm plans to drill 12 separate targets but noted that 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," said Circle Oil.
The 12 locations initially chosen are targeting resources of approximately 25 billion cubic feet of Gas initially in Place and the first well, SAH-W1, is targeting a dipping three-way fault bounded sand lens with target depth at 1,225 metres measured depth and primary targets in the Guebbas Formation at 1,060 and 1,160 metres measured depth.
The company's pre-drill estimates are for Gas initially in Place of 1.85 billion cubic feet and 1.0 billion cubic feet, respectively for the two targets.
Circle said that it anticipates 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.
The Sebou and Lalla Mimouna permits are a partnership between Circle Oil Morocco Ltd (75%) and Office Nationale de Hydrocarbures et des Mines (25%).
"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," said Chris Green, CEO of Circle Oil.
Shares in the company were trading 1.07% lower at 22.63 pence per share Monday afternoon.
By Alice Attwood; [email protected]; @AliceAtAlliance
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