Working Capital Facility

20 December 2012

Circle Oil Plc

("Circle" or the "Company")

Working Capital Facility - US$12.5 Million

Circle Oil Plc (AIM: COP), the Middle East and Africa focused oil and gas exploration, development and production company, is pleased to announce that it has agreed a US$12.5 million (the "Principal Sum") secured working capital facility (the "Facility") with Ahli United Bank Egypt ("AUBE"). The Facility will be used to fund ongoing expenditures in respect of Circle's 40% interest in the North West Gemsa Concession ("NWG") in Egypt enabling Circle to use its available cash balances for alternative projects.

The Facility has a term of two years and is secured primarily on certain of Circle's receivables from the Egyptian General Petroleum Company ("EGPC") to which it sells its production from NWG. The Facility attracts interest at a rate of LIBOR plus 4.25 per cent. Under the terms of the Facility, Circle has the right to drawdown up to the Principal Sum to fund on-going expenditures in NWG, and at its option, may pre-pay any outstanding amount with accrued interest, subject to minimum repayment amounts of US$1 million.

Circle currently has cash balances of US$20.50 million.

Commenting on the Facility, Prof Chris Green, CEO, said:

"This Facility provides additional working capital for our Egyptian assets and is recognition of the quality of our producing assets in that country. The Facility augments already robust current cash balances and will release additional capital for investment across the Group's area of operations as we develop senior debt options to accelerate Company growth".

For further information contact: 

Circle Oil Plc (+44 20 7638 9571)

Professor Chris Green, CEO

Brendan McMorrow, CFO

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 number of 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.