21st Jun 2007 11:00
Circle Oil PLC21 June 2007 21 June 2007 CIRCLE OIL PLC ("Circle" or the "Company") DRILLING CONTRACT SIGNED IN TUNISIA Following the announcement on 16 April 2007 that Circle Oil plc had entered intoa farm-in agreement with EXXOIL S.A. on two of EXXOIL's licences in Tunisia,Circle is today pleased to announce that a contract has been signed betweenEXXOIL, the operator of the exploration programme, and Oil Field ServicesCompany for the drilling of two onshore wells. The first well is scheduled to spud in July/August on the Zita prospect (RasMamour Permit) with spudding of the Serdouk prospect (Grombalia Pemit) plannedfor before the year end. Oil Field Services will use its Franks Cabot 900 rig tocarry out the drilling. Commenting on this news David Hough, CEO of Circle Oil, said: "The signing of this contract is an important step forward for Circle as boththese Tunisian prospects have the potential to provide Circle with earlyproduction and cash flow. The start up of this contract will mark the beginningof Circle's aggressive 2 year drilling programme whereby at least 9 wells willbe drilled on its licences in Tunisia and Morocco." Enquiries: Circle Oil plcDavid Hough, CEO (+44 20 7638 9571) Citigate Dewe Rogerson (+44 20 7638 9571)Media enquiries: Martin Jackson/George CazenoveAnalyst enquiries: Nina Soon Notes to editors Circle Oil plc (AIM: COP) is an Irish oil & gas exploration, development andproduction company with a growing portfolio of assets in Morocco, Tunisia,Namibia, Oman and Panama. The company listed on AIM in October 2004. Circle has the largest licence holding of any company in Oman. In addition toBlock 52, the company also has an ongoing exploration program in onshore Block49. Worldwide, the company is active in exploration in the Owambo Basin,Namibia; in the Caribbean Sea, offshore Panama; the Rharb Basin, Morocco; theRas Mamour Permit in southern Tunisia and Grombalia Permit in northern Tunisia. The Company's strategy is to locate and secure licences in new hydrocarbonprovinces and through targeted investment programmes, monetise the value inthose assets for the benefit of shareholders. This could be achieved throughfarm-outs to selected partners who would then invest in and continue thedevelopment of the asset into production. Or, Circle may itself opt to use itsown expertise to appraise reserves and bring assets into production, generatinglong term cash flow for further investment. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Circle Oil Plc