Circle Oil Plc the international oil and gas exploration, development and production company, is pleased to announce the following update regarding its operations and forthcoming work programmes for 2013 in its operational areas of Morocco, Egypt, Tunisia and Oman.

Morocco

  • Six well drilling programme planned for H1 2013 in the Sebou and Lalla Mimouna Permits
  • Over 50% increase in gross production from 4.5 MMscfd to between 6.5 and 7.0 MMscfd planned in Q1 2013
  • Preliminary interpretations of Lalla Mimouna 3D seismic curvey encouraging with wells in the 2013 programme aiming to provide substantial additional reserves
  • Third offtake agreement added 22 December 2013 for initial additional US$0.5 Million per annum

Egypt

  • Four well drilling prgramme comprising of producer and three injector wells planned from now through to the end of July 2013
  • Gross production averaging 9,091 bopd for January 2013
  • Additional production now on stream from 12 February 2013 with the start up of associated gas production at an initial rate of 9 MMscfd (1,638 boepd)
  • AASE-14 ST2 to be tested and hooked up as another additional producer by the end February 2013
    Gas processing expected to provide an additional 140-150 bocpd and 35 tonnes of LNG (c.400 boepd) per day

Tunisia

  • 300 sqkm 3D survey in the Mahdia permit to be acquired during Q1 to delineate a drilling location for a well in 2013. Seismic vessel arrived Tunisia 15 February 2013
  • Two well drilling programme including one well onshore on the Sedoulkech prospect in the Ras Marmour permit targeting 20 MMBO STOOIP and one well planned for the offshore Mahdia permit targeting up to 179 MMBO STOOIP

Oman

  • Offshore 2D seismic survey of 855 km to be completed on nearshore leads in Block 52 as a precursor to drilling in 2014
  • Finalisation of studies in onshore Block 49 to determine prospectivity to drill
  • Application for a number of new permits in ongoing

Balance Sheet

  • Agressive work programme planned utilising robust current cash position and cash flows from rising revenue stream
  • Cash balances in excess of $20 million at end December 2012, up 40% year on year
  • Working capital facility of $12.5 million secured to fund existing projects in Egypt thereby enabling Circle use its available cash for alternative projects
  • Circle is in ongoing discussions with respect to further senior debt to fund company growth plans

Commenting on the announcement Prof. Chris Green, CEO, said:
“Against the backdrop of significant change in the MENA region, Circle has used its experience in the region to consolidate its position and continues to make excellent progress in its core operations. As a result, Circle is now well placed and well funded to accelerate its operations in 2013 and begin unlocking the latent value in its substantial portfolio.”

Press Release