11th May 2015 09:02
LONDON (Alliance News) - Circle Oil PLC Monday said the SAH-W1 well in the Sebou Permit, onshore Morocco has the potential to add "significant volumes" to its reserves for gas production.
The oil and gas exploration, development and production company, which focuses on the Middle East and North Africa, issued an operating update on the well, which was drilled to a total depth of 1,263 metres measured depth in June 2014, with "gas shows encountered at different levels within the target Guebbas sands".
Circle Oil said it will abide by "normal practice" as it produces from the lowermost Guebbas zone followed by the main Guebbas zone sequentially from the bottom up, where pressure is at its highest. The lowermost Guebbas zone has 3.6 metres of net pay, according to Circle, while the test over this interval flowed at a sustained rate of 4.94 millions of standard cubic feet of gas per day on a 24/64" choke over five hours.
After being released from the SAH-W1 well, the rig is on its way to the Lalla Mimouna concession to drill Circle's first well on that permit. Located in the central part of Lalla Mimouna Nord on the east-west trending Anasba Ridge, within the existing 3D seismic area, LAM-1 will be the fifth well to be drilled under the campaign, according to the company's statement.
The LAM-1 well's target is for Miocene gas-bearing sands. The primary target sands are expected to be at a depth of 1,231 metres measured depth and the total depth of the well at 1,521 metres measured depth.
Circle said that further wells in Lalla Mimouna and Sebou permits will follow to complete the programme.
"We are delighted with the results of the SAH-W1 well test. This was the first well of our third drilling campaign, drilled with our partner ONHYM in the Sebou permit and is coupled with our drilling programme in the Lalla Mimouna permit. We believe that this well has the potential to add significant volumes to our reserves for gas production and at rates not subject to price fluctuation due to fixed price contracts," Chairman Steve Jenkins said in a statement.
Circle Oil shares were up 4.0% at 13.00 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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