Operational Update Egypt

10 January 2011

Circle Oil Plc

("Circle" or the "Company")

Operational Update Egypt

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, provides the following operational update for the Al-Amir SE-7 well which is being drilled in the N W Gemsa Development Lease, Egypt ( Circle: 40% Working Interest) .

The well Al- Amir SE-7X, intended to be a Kareem sands water injector, has been drilled to a depth of 9,580 ft and the 9 5/8" casing has been run and cemented into the top of the Kareem Formation shales. Preliminary analysis of open hole logging of this upper part of the well, indicates potential for hydrocarbons in the South Gharib Formation in the order of 6 ft in thickness. This interval is similar to that encountered in the Al Amir SE-6X and Al Ola-1X wells, but the interval has not been tested and, as planned, is now cased off. Drilling is ongoing to the Kareem sands target and to the deeper Lower Rudeis Formation with a prognosed TD of 16,750ft. Further announcements will be made in due course.

The current production rate from the NW Gemsa fields of Geyad and Al Amir SE is between 8,000 and 8,500 bopd (gross). Fluid offtake from the Geyad and Al Amir SE fields will continue to be managed in the light of good oil field practice as the waterflood is initiated and becomes operational and proven effective to maximise recovery. Gross production from start up in February 2009 through to end December 2010 was 4 MMBO.

Glossary

bopd barrels of oil per day

TD Total Depth

MMBO Million barrels of oil

ft Feet

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, 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. Professor Green has relied on primary information supplied by the operator in carrying out his review.

For further information contact: 

Circle Oil Plc (+44 20 7638 9571)Professor Chris Green, CEO

Evolution Securities (+44 20 7071 4300)Rob CollinsChris SimNeil Elliot

Fox-Davies Capital (+44 20 7936 5230)Daniel Fox-Davies

Philip Davies

David Porter

Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonGeorge Cazenove

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 with an expanding portfolio of assets in Morocco, Tunisia, Oman and Egypt, with a combination of producing, low-risk near-term production and acreage with significant upside exploration 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 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 offshore Block 52, the Company also has an ongoing exploration program in Block 49 onshore.

The Company'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. Circle may use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment. In addition it may seek farm-outs to selected partners who would then invest in the exploration and continue through to the development of the assets for production.

Further information on Circle is available on its website at www.circleoil.net.