Operating Update Egypt - Replacement

7 March 2013

CIRCLE OIL PLC

("Circle" or the "Company")

Operating Update Egypt - Replacement

The following replaces the announcement released on 7 March 2013 at 07.00 under RNS No 4023Z. The gas production rates stated should have been 1.359 MMscf/d for the AASE-14X ST well and 10 MMscf/d gross production for the AASE and Geyad fields.

All other details remain unchanged. The full amended text is shown below.

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-14X ST Well

The infill production well AASE-14X ST, located centrally in the field midway between AASE-1X ST and AASE-12X ST, encountered 20 ft MD of gross oil-bearing Shagar sand (9,610-9,630 ft MD) with 16 ft MD net pay, plus 15 ft MD of gross oil-bearing Rahmi sand (9,680-9,695 ft MD) with 13 ft MD net pay, with a total depth of 10,000 ft MD. The well has been completed as a Rahmi producer and the initial test rate was 3,486 bopd and 3.18 MMscf/d through a 48/64" choke. The well has been put on production and the stabilised rate on 5 March 2013 was 1,333 bopd and 1.359 MMscf/d through a 28/64" choke.

The rig has been released from this well and moved to commence drilling AASE-16X, a water injector located in the central western area of the field.

Gross production from the AASE and Geyad fields is currently 9,600 bopd and 10 MMscf/d (11,420 boepd). Cumulative production from the NW Gemsa Concession has now exceeded 10.7 million barrels of 42 degree API Crude oil.

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

"Circle is very pleased with the positive flow rates from the Rahmi sands of the AASE-14X ST well, where the upside of the Shagar sands remains a target for future production. The rig has been moved to drill the AASE-16X water injector well, which was spud in early March."

Glossary

boepd barrels of oil equivalent per day

bopd barrels of oil per day

ft feet

MD Measured depth

MMscf/d Millions of standard cubic feet of gas per day

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 Sim

Neil Elliot

Liberum Capital Limited (+44 20 3100 2222)

Simon Atkinson

Citigate Dewe Rogerson (+44 20 7638 9571)

Martin Jackson

Jack Rich

Murray Consultants (+353 1 498 0300)

Joe Murray

Joe Heron

Notes to Editors

Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production Company with an expanding portfolio of assets in Morocco, Tunisia, Oman and Egypt 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 two 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 licence holding of any company in Oman. In addition to its prospective Block 52 offshore, Circle also 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 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.