Circle Oil: Drilling Preps Underway for Grombalia Permit

Circle Oil Plc announced the following update regarding its operations in the Grombalia Permit, Tunisia.

Written confirmation of the six month extension for the fourth validity period of the Grombalia Permit to December 18, 2012 was received from the Direction Générale de l'Energie on June 22, 2012.

Preparations are now underway to drill exploration well Bou Argoub-1 (BAB-1) in the South West Belli area of the Grombalia Permit, near to the Belli, El Manzah and Beni Khaled fields. It is expected that the drilling of this well will commence early in the second half of 2012.

The BAB-1 well will have an expected TD of 4,429 feet (1,350 meters) and is targeting a fault-bounded structural culmination crossing two vertically stacked fractured carbonate reservoirs, the Eocene Bou Dabbous Formation and the Late Cretaceous Abiod Formation. These are the main oil-producing formations in the north eastern part of Tunisia.

The Grombalia Permit covers an area of 1,078 square miles (2,792 square kilometers). The partners include Exxoil Tunisie Ltd (65% working interest and operator) and Circle (35% working interest).

"We are very pleased that preparations are now underway for the drilling of our exploration well in the Grombalia Permit. This type of fault-bounded structure has proven historically to be successful for drilling," CEO Prof Chris Green said.

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