Drilling Commenced at Circle's Final Rharb Well

Circle Oil announced that following improvements in ground conditions in parts of the Rharb Basin the fifth and final well in the current drilling campaign has been spudded.

The well designated KSR-11 is targeting the Hoot formation at an estimated depth of 1,750 meters. The target is similar to those previously proven successful in KSR-8 and KSR-10.

It is presently anticipated that the drilling, logging, and if successful, testing of the well will take approximately 5-6 weeks to complete.

The Sebou permit lies to the north-east of Rabat in the Rharb Basin in Morocco. The Rharb Basin is a foredeep basin located in the external zone of the Rif Folded belt. The concession agreement, in which Circle has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production license of 25 years, plus extensions in the event of commercial discoveries.