16th Mar 2015 17:08
LONDON (Alliance News) - Circle Oil PLC Chairman Steve Jenkins Monday said the results of the KAB-1bis well in Morocco was disappointing but noted that the well was targeting a "smaller incremental accumulation".
In a statement, the oil and gas exploration, development and production company said the well, which was spudded on February 4, has been plugged and abandoned.
The 2010 KAB-1 well had encountered gas shows in the target Miocene Guebbas sands, the company said, but blamed "problematic swelling clays" as the reason the well could not be logged or tested.
"KAB-1bis had the same target sands and was drilled with an adapted mud system to minimise drilling problems in a slightly more updip location. The primary target Guebbas sands were absent down to a total depth of 1,410 metres measured depth and it was decided to plug and abandon the well. This result indicates that the gas shows encountered in the Guebbas sands in the KAB-1 well were of a very limited extent," Circle Oil said.
"The rig has been released to complete and test the SAH-W1 well on the western area of the Sebou Permit. The SAH-W1 well encountered three gas bearing Guebbas sands, but could not be completed as a non-standard 4.5 inch liner was needed. It is planned to produce the three zones sequentially from the bottom up, where the highest pressure is present," Circle Oil said.
Jenkins said: "We look forward to the results of testing of the SAH-W1 well and continuation of the drilling campaign on the Sebou and Lalla Mimouna Nord Blocks."
Circle Oil shares closed down 10% at 10.00 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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