3rd Aug 2015 07:32
LONDON (Alliance News) - Circle Oil PLC shares were trading lower on Monday morning after the company said it has plugged and abandoned the NFA-1 exploration well at the Lalla Mimouna permit, onshore Morocco.
Circle said the well encountered gas shows during drilling but said the reservoir quality failed to meet its pre-drill estimates, meaning it has been plugged and abandoned.
The drilling rig has now been moved to the Ksiri South exploration well in the Sebou permit in the Rharb Basin, also in Morocco.
"The NFA-1 exploration well brings to a close the first phase of drilling on the Lalla Mimouna permit. The drilling performance has been good and this phase has been finished ahead of schedule. As planned we will now return to the Sebou permit to continue our drilling operations there while we interpret the valuable data gained from the first three Lalla Mimouna wells," said Mitch Flegg, Circle Oil's chief executive.
Shares in the company were down 6.5% to 7.6 pence in early trade, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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