19th Jun 2008 07:00
RNS Number : 0454X
Circle Oil PLC
19 June 2008
19 June 2008
CIRCLE OIL PLC
("Circle" or the "Company")
Mahdia Permit, Tunisia
Circle Oil plc (AIM:COP), the international oil and gas exploration and development company, is pleased to announce the signing of a farm-in agreement to the Mahdia Permit offshore Tunisia with Tethys Oil and Mining Ltd. The Mahdia permit covers an area of 3780 square kilometres and is bounded by the Nabeul Permit to the north and the territorial boundary with the island of Lampedusa (Italy) to the east. Historically the geology and potential of this and the surrounding offshore area was successfully explored by Shell and Total and previous exploration has resulted in discoveries and commercial oilfields including fields such as Tazerka, Birsa, Oudna, Halk El Menzel and Isis.
Following the farm-in, Circle will hold a 70% working interest in the permit. Circle will become operator once the acquisition of 500 kilometres of additional 2D marine seismic is complete, prior to the commencement of any drilling in the permit. The permit commitments require the acquisition of 500 kilometres of 2D seismic in the first two years of the licence which commenced July 2007 and the drilling of one commitment well in the subsequent three years to 2012. The permit contains multiple undrilled prospects which have already been mapped from the existing datasets. The additional seismic will be used to enhance ranking and prioritization of these prospects prior to drilling.
Commenting on the results David Hough, CEO of Circle Oil, said:
"We are particularly pleased to be able to announce this farm-in offshore Tunisia. The acreage is well known to two of our senior management who worked this geology in their earlier careers. Many of the main undrilled prospects in Mahdia are already mapped and this play has proven success. These prospects remained undrilled due to their size and historic lower oil prices, but they are now very commercial. With good potential reserves they are now definitely worth pursuing. The farm-in further enhances our position in Tunisia and the region generally. We are pleased to be a part of the effort to establish Tunisia as a substantial oil producer."
For further information contact:
Circle Oil plc
David Hough, CEO (+44 20 7638 9571)
Citigate Dewe Rogerson (+44 20 7638 9571)
Media enquiries: Martin Jackson
Analyst enquiries: George Cazenove
Collins Stewart Europe Limited (+44 20 7523 8350)
Michael O'Brien
Notes to Editors
Circle Oil
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and development company with a growing portfolio of assets in Egypt, Morocco, Tunisia, Namibia and Oman. The company listed on AIM in October 2004.
Circle has the largest licence holding of any company in Oman. In addition to Block 52, the company also has an ongoing exploration program in onshore Block 49. Worldwide, the company is active in exploration in the Owambo Basin, Namibia; in the ZeitBay area of Egypt; the Rharb Basin, Morocco; the Ras Mamour Permit in southern Tunisia and Grombalia Permit in northern Tunisia.
The Company's strategy is to locate and secure licences in new 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 long term cash flow for further investment.
www.circleoil.net
This information is provided by RNS
The company news service from the London Stock Exchange
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