Operating Update Egypt

10 September 2013

Circle Oil Plc 

("Circle" or the "Company")

Operating Update Egypt

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following update regarding the Al Amir SE Field ("AASE") and the Geyad Field in Egypt.

AASE-18 Well

AASE-18 was spud on 7 July 2013 and is located in the north-western part of the AASE. The well encountered the Kareem sands over 200 feet high to prognosis with 34 feet of net pay in the Shagar and 32 feet of net pay in the Rahmi, both zones of good reservoir quality. Following successful logging, the well has been tested and completed as a Rahmi producer. Rahmi perforations between 9,757-9,797.5 feet MD were completed on 30 August 2013 and the well was put onto multi rate testing and pressure build up on 31 August. The flow test on a 48/64" choke produced at a rate of 1,952 bopd and 1.821 MMscf/d of gas (331boepd). Following a pressure build up, the well was connected for production with an initial flow rate on a 18/64" choke of 1,056 bopd of 42 degree API crude oil and 0.907 MMscf/d of gas (165 boepd).

AASE-15 Well

AASE-15 was spud on 23 August 2013, located in the north-western part of the field, downdip of and 800 metres north-west of Rahmi producer AASE18. This well is planned as a vertical hole to appraise the Shagar and Rahmi sands and, depending on reservoir quality and hydrocarbon saturation, may be completed as a Rahmi injector or a Shagar producer.

Production

The current gross daily production rate from the AASE and the Geyad Field is now standing at 11,234 bopd and 12.54 MMscf/d (2,282 boepd). Cumulative production from the NW Gemsa Concession has now exceeded 12.6 million barrels of 42 degree API crude oil.

Water Injection

Water injection in the AASE and Geyad Field is currently about 32,330 bwpd and the cumulative injection to date is about 13.5 MMbw.

The NW Gemsa Concession, containing the Al Amir and Geyad Development Leases, covering an area of over 260 square kilometres, lies about 300 kilometres south-east of Cairo in a partially unexplored area of the Gulf of Suez Basin.

The concession agreement included the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

Prof Chris Green, CEO, said

"Circle is very pleased with the results of the AASE-18 well, which will provide significant additional oil and gas production from the Al Amir SE field. This has resulted in a further increase in the total gross daily production to over 13,500 boepd."

Glossary

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Professor Chris Green, Chief Executive Officer of Circle Oil Plc, an explorationist and geophysicist with over thirty years oil & gas industry experience, and Dr Stuart Harker, VP Geology, also with over 30 years experience, are the qualified persons as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who have reviewed and approved the technical information contained in this announcement. Professor Green and Dr Harker have relied on primary information supplied by the operator in carrying out their review.

For further information contact:

Circle Oil Plc (+44 20 7638 9571)

Professor Chris Green, CEO

Investec (+44 20 7597 5970)Chris SimGeorge Price

James Rudd

Liberum Capital Limited (+44 20 3100 2222)Simon Atkinson

Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonJack Rich

Murray Consultants (+353 1 498 0320)Joe MurrayJoe Heron

Notes to Editors

Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production Company holding a portfolio of assets in Morocco, Tunisia, Oman, and Egypt with a combination of low-risk, near-term production, and significant upside exploration potential. The Company listed on AIM in October 2004.

Internationally, the Company has continued to expand its portfolio over the past years and now has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia, and the Zeit Bay area of Egypt. Circle also has the largest licensed acreage of any company in Oman. In addition to its prospective Block 52 offshore, Circle has an ongoing exploration programme in Block 49 onshore.

Circle's strategy is to locate and secure additional licences 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 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.