Oil and gas explorer Circle Oil Plc said its Egyptian well Al Ola-1X was oil bearing with no sign of oil-water contact (OWC).

The company, which has assets in Morocco, Namibia, Oman, Egypt and Tunisia, also said its secondary target at the well gave strong indications of gas. The well is planned to be drilled to a total depth of 13,700 feet.

“Once this well is finished, we will consider the need for some injector support drilling before undertaking more appraisal and development wells,” Chief Executive Chris Green said in a statement.

Circle Oil said the company, along with its partners, agreed on plans to bring gas associated with the NW Gemsa Concession producing wells in Egypt into production.

Current gross production from the Al Amir, Al Amir SE and Geyadfields in the NW Gemsa Concession is 9,000-9,500 barrels of oil per day.

Vegas Oil and Gas, which is the operator of the concession, owns a 50 percent stake in it, while Circle Oil holds 40 percent and Sea Dragon Energy the remaining stake.

(Source: Reuters)