26th Sep 2005 06:00
Embargoed: 0700hrs 26 September 2005 Circle Oil plc ("Circle" or the "Company") Award of Block A, Panama Circle Oil plc is pleased to announce that the Company has been awarded aprospecting licence for Block A, Panama making it one of the largest offshoreacreage holders in the region.The license block, situated in the south-western Caribbean, off the northerncoast of Panama, covers a total of 30,000sq km in the Panamanian waters of theColombia Basin which is one of the major basins in the Caribbean Plate.The basin margins in the block are known to contain a thick, deep sedimentarysection which presents a good source rock and favourable geological structuresfor the accumulation of commercial quantities of hydrocarbons. Furthermore, theresults of various regional seismic studies indicate that thick sections ofshallow water origin have been preserved in the area and there is also seismicevidence of gas hydrates which, with other geochemical techniques alreadycarried out, increase the evidence of a widespread hydrocarbon source in thesouthern part of the Colombia Basin.Circle will immediately carry out data interpretation work and, in 2006,intends to commence a full seismic programme in order to fully evaluate thepotential of this prospective area.Commenting on the licence acquisition Circle's Chief Executive David Houghsaid:"The Caribbean is attracting increasing industry attention and several of themajor oil producers have already acquired substantial holdings in the area.Circle now boasts a global portfolio of major assets in Africa, the Middle Eastand now the Caribbean thereby underpinning the Company's strategy to explore inareas that have geological conditions with the potential for largediscoveries."For further information please contact,David HoughChief ExecutiveTel. 00-353-61-354 831Ben Simons/Chris RobertsHansard CommunicationsTel. 020-7245-1100Notes to editorsCircle Oil plc is a recently established exploration and production companywith high quality management and an attractive portfolio of prospects. TheCompany's strategy is to explore in politically stable countries which maybeunder explored but have geological conditions with the potential for largediscoveries.Currently Circle Oil plc has major licenses in the following areas:NamibiaCircle Oil holds a 200,000sq.km onshore reconnaissance license. Circle Oilcurrently holds a 90% interest in this licence and NAMCOR, the NationalPetroleum Corporation of Namibia (Pty) Ltd, holds the remaining 10%. Anagreement has been signed with China Shine which will see them earn a 72%interest in Circle Oil's Namibian licence and reduce the Company's holding to18%.China Shine are currently completing due diligence on the area and areestimating a budget of over US$1 billion for the project.OmanCircle Oil is now one of the largest acreage holders in Oman, holding bothBlock 49 and Block 52.Block 49, onshore, covers an area of over 15,400sq.km and is situated in thesouthwest of Oman. It lies immediately to the west of Block 6 which producesover 700,000 barrels of oil per day.Block 52, an offshore block in the Arabian Sea off the southern coast of Oman,covers an area of over 100,000sq.km. Exploration and Production SharingAgreements have been signed with the Sultanate of Oman on both blocks.PanamaCircle Oil holds Block A, an offshore block some 30,000 sq.km in size, situatedin the Panamanian waters of the Colombia Basin which is one of the major basinsin the Caribbean Plate. The Company believes that this basin has the potentialfor a significant accumulation of hydrocarbons.Corporate informationCircle Oil shares are quoted on the AIM market of the London Stock Exchangeunder the symbol COP.ENDCIRCLE OIL PLCRelated Shares:
Circle Oil Plc