19th Jun 2009 14:49
CIRCLE OIL PLC
("Circle" or the "Company")
Drilling Update
Discovery in Well KSR-9, Sebou Permit, Rharb Basin, Morocco
Circle Oil plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce that the KSR-9 exploration well has been successfully drilled, logged and tested in the Sebou Permit, Morocco. The Company confirms a discovery in the Mid and Lower Gaddari and Upper Guebbas sequences with the well testing gas at sustained rates from two tested zones.
The primary target in the Mid Gaddari sequence tested at a sustained rate of 8.05 MMscfd from the upper primary target using a 30/64 inch choke. The perforated interval of 1212.8 - 1215.5 metres has a calculated net gas pay of 2.7 metres.
The middle secondary target in the Lower Gaddari and Top Guebbas sequences was perforated from 1239.2 - 1239.8 metres and 1253.6 - 1254.7 metres tested gas at a sustained rate of 4.66 MMscfd using a 24/64 inch choke with a calculated net pay of 1.7 metres.
The lower tertiary target in the Lower Guebbas sequence between 1319.0 - 1319.5 metres has a calculated net gas pay of 0.5 metres and testing of this interval will be carried out at a later date. The well is being completed as a potential producer.
A full technical evaluation of all the results of the well is underway. This will allow for forward planning as a precursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves. The drilling rig has now completed the last well of the planned six well drilling programme in the area and is being demobilized.
The Sebou permit lies to the north-east of Rabat in the Rharb Basin in Morocco. The Rharb Basin is a foredeep basin located in the external zone of the Rif Folded belt. The concession agreement, in which Circle has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production licence of 25 years plus extensions in the event of commercial discoveries.
The following chart summarises the results for each of the wells drilled;
|
Well |
Zones Tested |
Sustained Flow rates MMscfd |
|
ONZ-6 |
1 |
3.32 |
|
CGD-9 |
1 |
8.86 |
|
KSR-8 |
2 |
19.24 |
|
DRJ-6 |
1 |
(to be tested at a later date) |
|
CGD-10 |
1 |
3.90 |
|
KSR-9 |
2 |
12.71 |
David Hough, CEO of Circle, said:
"We have now completed the six well drilling programme with yet another success in the Rharb. It has been a very successful drilling campaign and Circle has demonstrated its ability to perform and bring in the desired results with the drill bit. I am delighted to once again thank our technical and operational staff for their professionalism in achieving such a tremendous strike rate, our service companies for their contribution and also our partner ONHYM for their valued and continuing support.
"We will now take a break from drilling in the Rharb and concentrate over the coming months on tying-in the discoveries to the local pipeline infrastructure and on revenue earning extended well testing and bringing the discoveries into full commercial production. "
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.
Glossary:
MMscfd - Millions standard cubic feet per day
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 / George Cazenove
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 Oil is available on its website at www.circleoil.net
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