Operating Update Egypt

2 April 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

AASE-16 Well

AASE-16 was spud on 1 March 2013 and is located on the central western flank of the AASE field, downdip of the AASE-10X Rahmi sand water injector. The well's objective was to appraise both the Shagar and Rahmi sands for injection in that location. The well was successfully drilled to a total depth of 11,100 ft MD into the Upper Rudeis Formation. The well encountered 26 ft of water bearing net reservoir in the Kareem Shagar sand (gross interval 10,807 to 10,834.5 ft MD) and in addition, encountered 31 ft in the underlying Rahmi sand in poor quality reservoir facies. The Shagar zone will be perforated and testing is planned to be conducted shortly. The results will be announced in due course.

AASE-17 Well

Following the successful completion of the AASE-16 well, it is planned to mobilise the rig to drill the infill Shagar producer well AASE-17, located centrally in the AASE field adjacent to the Rahmi producer AASE-14ST, which encountered 16 ft of net oil-bearing pay in the Shagar sands.

Production

Gross production from the AASE and Geyad fields is currently 9,721 bopd and 10 MMscf/d (11,541 boepd). Cumulative production from the NW Gemsa Concession has now exceeded 10.9 million barrels of 42 degree API Crude.

Water Injection

Cumulative injection to date is 9.2 million barrels from three injectors in AASE and one in Geyad. The current injection rate is approximately 20,840 bwpd.

The NW Gemsa Concession, containing the Al Amir and Geyad Development Leases, covering an area of over 260 square kilometres, 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 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

"The success of the AASE-16 well in finding good Shagar reservoir sands below the oil-water contact is an excellent result. This well should provide excellent pressure support to the central area of the field to increase sweep efficiency and ultimate recovery. The rig is planned to be moved next to drill well AASE-17, which is intended as a producer for the Shagar sands nearby the AASE-14ST Rahmi sands producer well in the AASE field as part of the overall plan to improve the productivity of the NW Gemsa accumulations."

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 SimNeil Elliot

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; the Grombalia Permit in northern 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.