26th Aug 2014 07:41
LONDON (Alliance News) - Circle Oil PLC shares jumper higher in opening trade on Tuesday after the company said good light oil shows had been found at its El Mediouni-1 well in Tunisia.
Shares in the Middle East and Africa-focused oil and gas explorer were up 24% to 22.00 pence on Tuesday, putting it among the top five risers on the AIM All-Share.
Circle said very good light oil shows were found in the Lower Birsa carbonate primary target at the EM-1 well site, as well as in the Upper Ketatna carbonates secondary target, both located in the Mahdia Permit, offshore Tunisia.
The company said the strong hydrocarbon indications at the Birsa and Ketatna targets confirm the existence of working petroleum at the site. Circle Oil said internal estimates for the likely recoverable prospective resources discovered by the EMD-1 well are about 100 millions of barrels of oil.
However, Circle Oil said the hole conditions at the site became untenable quickly following the discovery, meaning it was not able to conduct a full log evaluation of the hydrocarbon column in the EM-1 well before suspending it.
Despite those issues, "we intend to take our appraisal effort forward on the Mahdia Permit as quickly as possible following this proof of the El Mediouni petroleum accumulation and will provide further updates of our plans in due course," said Circle Oil Chief Executive Chris Green.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Circle Oil Plc