25th Aug 2009 07:00
25 August 2009
Circle Oil Plc
("Circle" or the "Company")
Successful test to Al Amir SE-3 Well
Al Amir Development Lease, NW Gemsa Concession, Egypt
Circle Oil plc (AIM: COP), the international oil and gas exploration and development company, is pleased to announce initial results from the Al-Amir SE-3 appraisal well which has been successfully drilled following sidetracking in the onshore North West Gemsa Concession in Egypt.
Circle is delighted to confirm the well tested 40° API oil and gas in the Kareem Shagar Formation at a sustained average rate from 35 feet net pay of 2,395 bopd and 2.2 MMscfd using a 32/64" choke. Short term testing achieved a rate of 4,938 standard bopd and 8MMscfd with a 64/64"choke.
A full technical evaluation of all the results is underway to further assess the resource and to permit development planning. An assessment of reserves has not yet been completed. The well was completed as a potential producer with the testing being carried out once the rig, Mubarak-1, moved to commence drilling the Al Amir SE-4 appraisal well.
The NW Gemsa concession covers an area of over 400 square kilometres and lies about 300 kilometres southeast of Cairo, in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners are Vegas Oil and Gas (50% interest and operator), Circle Oil plc (40% interest) and Premier Oil plc (10% interest).
Commenting on this latest discovery, David Hough, CEO of Circle, said:
"We are obviously delighted that the Al Amir SE-3 appraisal has been successful. These appraisal wells are adding important information to our knowledge of the Al-Amir SE area including more data necessary for reservoir model development. With the infrastructural engineering for the Geyad -1 discovery now completed, we are pushing ahead to achieve an increase in near term production as soon as possible. The rig has now spudded the third appraisal well on the field (Al-Amir SE-4). This appraisal location, which is regarded as a higher risk location, also has the alternative role of being potentially suitable to be used as an injector to provide pressure support should that be needed in the future."
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Glossary |
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API |
American Petroleum Institute density scale |
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Bopd |
Barrels of oil per day |
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MMscfd |
Millions standard cubic feet per day |
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Professor Chris Green, Chief Operating Officer of Circle Oil plc, an explorationist and geophysicist with over thirty years oil & gas industry experience, is a qualified person, as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement. In carrying out his review Professor Green has relied on information supplied by the operator.
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden / Adam Cowen
Fox-Davies Capital (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Notes to Editors:
Circle Oil plc
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and production Company with an expanding portfolio of assets in Morocco, Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term production and significant exploration upside potential. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; the Zeit Bay area of Egypt and the Owambo Basin, Namibia. Circle also has the largest licence holding of any Company in Oman. In addition to its highly prospective Block 52 offshore, the Company also has an ongoing exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses in prospective hydrocarbon provinces and through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may itself opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.
Further information on Circle is available on its website at www.circleoil.net
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Circle Oil Plc