Circle Commences Morocco Drilling Program

Circle updated on its activities in Morocco and Oman.


Following the winter flooding, existing access roads have been repaired and new access roads and concrete drilling bases for the first three wells in the current five well drilling program have been completed. The civil engineering works for the fourth wellsite are currently in progress.

The drilling rig has now commenced drilling at the first wellsite in the Sebou Permit. The first well, designated KAB-1, is planned to drill to a Miocene Guebbas Sand target with the well expected to TD at 1,360 meters. The drilling of this and each subsequent well in this campaign is presently expected to take approximately five to six weeks per well. All wells are targeting Miocene aged gas sand targets varying in depth from 900 to 1,700 meters.

As part of this campaign the DRJ-6 well, drilled in 2009, is scheduled to be re-entered and tested. As previously announced, a local transport strike prevented its testing during that drilling campaign.

Pre-planning for the 62 km extension to the gas trunk line is well advanced and the order for materials for the new 8-inch pipeline, which will have a production capacity of 23 MMscfd, has been placed.

Total gas production from our Morocco wells from start up in November 2008 to end August 2010 is 923 MMscf (26.13 MMNm3). Gross daily production is ranging between 1.4 to 2.2 MMscfd (40,110 to 62,643 MNm3), and is contracted to supply local industry demands.


Block 49

The Block 49 3D seismic acquisition survey (900 sq km) has been completed together with a 2D tie line of approximately 130 km between nearby wells. The field data is being transferred for processing and this will be followed by comprehensive interpretation in the Company's offices in the UK and Oman.

Early interpretations of the field data have indicated the potential presence of the Ara Salt Formation, a major productive interval in adjacent areas of Southern Oman.

Block 52

The Block 52 2D marine seismic acquisition contract has been awarded and signed with BGP Oil & Gas Services LLC. The vessel, BGP Challenger, will acquire 5,000 km of 2D data to assist in firming up and maturing the prospect inventory within the Block and is expected to undertake the survey in the latter part of the fourth quarter of 2010 with field operations presently scheduled to be completed before year-end.

Commenting Prof. Chris Green, CEO, said, "We are pleased to report the start-up of the Moroccan drilling program as recovering from the impact of the floods over last winter and spring has been a challenging task and we must thank our Moroccan staff, service companies and ONHYM for their support and hard work. In addition, the progress of the seismic surveys in Oman is on schedule and following processing, the interpretation of these data will enable Circle to firm up an inventory of prospects for drilling."


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