Circle Oil Commences 3D Seismic Program in Oman

Circle Oil Plc announced the following operational update in respect of its activities in Oman, Morocco and Namibia.

Oman Block 49

Mobilization for the 3D seismic survey in Block 49 onshore Oman has commenced. The survey, planned to cover some 900 square kilometers, is being undertaken by Sinopec and is scheduled to last approximately four months from commencement of acquisition. HSE start up audit and source testing is expected to begin later this week with actual field acquisition commencing after crew acceptance. The data acquired will be field QC processed before full 3D processing in the UK.

Oman Block 52

Tender documents have been prepared for the acquisition of 5,000 kilometers of commitment 2D marine seismic. The areas to be surveyed have been delineated and are aimed at providing the necessary data to firm up multiple leads which have been already identified and mapped from the first phase of 2D seismic. Actual acquisition timing will be dependent on the outcome of the tender which will confirm the availability of marine acquisition boats for the survey.


The Sebou Permit continues to experience abnormally high amounts of winter rainfall and consequently severe flooding has occurred over the permit. At the present time a large portion of the license area is flooded and civil engineering works in preparation for the forthcoming 2010 drilling campaign remain suspended. It is difficult to predict when work will re-commence. In view of the foregoing it is probable that drilling will not begin until the end of the first half. An update will be provided once it is possible to assess the situation with more certainty.

Pre-planning for the new pipeline has, nonetheless, continued and the required construction materials have been tendered for. The contract has been awarded for the supply of over 60 kilometers of 6-inch pipeline. Approvals procedures continue in parallel.

Production over the last three months has been largely maintained at 1.5 mmscfd due to the ability to switch production between wells, but even with this ability there has been some periodic minor disturbance to production.


Circle is still awaiting payment from Petro-Holland Ltd for the Owambo Basin Permit farm-in as per the agreement signed in September 2008. The protracted delay has been due to Petro-Holland finalizing their internal financial arrangements.



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