Circle Oil Spuds Zita Well in Tunisia

Circle Oil, in partnership with Exxoil Tunisie Ltd, commenced drilling operations on the Zita Prospect in the Ras Mamour Permit, southern Tunisia.

Drilling operations commenced on the 20th August 2007 and are anticipated to continue for the next two months.

The well is targeting the two main reservoir types in the area, which include the fractured dolomites of the Cenomanian Zebbag formation, which form the main reservoir of the nearby Ezzaouia oilfield and the Upper Jurassic sands levels of the M'rabtine formation, which are also productive in the Ezzaouia field.

Commenting on the start of drilling operations David Hough, CEO, Circle Oil said:

"Today marks the start of an 18 month series of field based operations for Circle in North Africa and the Middle East. Over the next few months, we plan to drill 3 wells in Tunisia and begin 3D seismic studies on our Moroccan Rharb Basin license. In addition, a very busy work schedule is currently being prepared for Tunisia, Morocco and Oman for 2008 which will drive the next phase of Circle’s evolution and progression towards becoming a balanced exploration and production company."

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