Circle Oil plc, the international oil and gas exploration and development company, has completed testing and analysis of the Zita-1 exploration well in the Ras Marmour permit in Tunisia (23% working interest).
The testing of the dolomitic Zebbag formation from 1,150 meters to 1,163 meters and the Orbata dolomitic formation from 1,357 meters to 1,380 meters proved formation water similar to the adjacent Ezzouia field with oil shows but did not result in a flow of commercial mobile oil. Subsequent analysis of all data has suggested that the testing sampled the Zebbag formation just below the oil water contact.
Following a review of the seismic and well data by all partners and their advisors, all partners have agreed to drill a curved sidetrack from the Zita-1 well to target the Zebbag formation updip, thus drilling the maximum thickness of the Zebbag and Orbata formation within the top crestal closure of the formation. The sidetrack will commence in approximately three to four weeks on arrival of directional drilling equipment and engineers from Schlumberger who will carry out the work. Upon completion, logs and testing will be run as necessary.
In a separate meeting, partners have approved the final location for the first well to be drilled in the Grombalia permit in northern Tunisia (36% working interest) together with its Environmental Impact Assessment and land approvals.
Following completion of an upgraded interpretation using the 2007 seismic results, a new location with lower risk analysis and larger closure area has been prioritized. This new prospect, named Mellah, will be drilled before the originally intended location at Serdouk. The well will target the same formations as those at Serdouk, and the Serdouk well has been rescheduled for drilling at a later date. The new interpretation has also firmed up a third prospect for future drilling. The civil preparation works for the well will commence next week and the well spud for Mellah will follow the completion of the Zita sidetrack, presently estimated as being towards the end of the 1st quarter 2008.
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