26th Jun 2006 07:01
Circle Oil PLC26 June 2006 26 June 2006 CIRCLE OIL PLC ("Circle" or the "Company") CIRCLE OIL SIGNS MOROCCO DEAL Circle Oil plc (AIM: COP), the oil and gas exploration and development group, istoday pleased to announce that Circle Oil Maroc Ltd (COML), its wholly ownedsubsidiary, has signed a Petroleum Agreement covering the Exploration andExploitation of Hydrocarbons with the Office National des Hydrocarbures et desMines (ONHYM) for the Sebou Concession situated in the Rharb Basin, Morocco. The concession covers an area of over 269 square kilometres and is for a periodof 8 years with the right of automatic conversion to a minimum (but extendable)25 year exploitation period upon the discovery of commercially exploitablehydrocarbons. Under the terms of the agreement the percentage interest in thepermit is COML 75% and ONHYM 25%. COML has agreed to carry out a 3D seismicsurvey to fully assess and rank the many prospects already identified in thearea before commencing a 6 well drilling programme in 2007. This equates to theminimum work programme for the first 3 years of the permit. Commenting on the agreement David Hough, Chief Executive of Circle Oil, said: "This agreement is significant as it provides Circle with a low risk concessionwith the potential for low cost, fast track development and production. There isan existing local market with good demand for gas and an established pipelinenetwork through the permit area. Success here will provide a long termcontinuing earnings contribution to the Company." Enquiries: Circle Oil plc (+44 20 7638 9571) David Hough, CEO Citigate Dewe Rogerson (+44 20 7638 9571) Media enquiries: Martin Jackson/George Cazenove Analyst enquiries: Nina Soon Also www.circleoil.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Circle Oil Plc