Circle Oil Signs JV Agreement in Panama

Circle Oil has signed a joint venture agreement with a private Australian company, Montage Petroleum Ltd, with regard to Circle's offshore Panamanian license block.

Under the terms of the joint venture agreement Montage have taken a one third interest in the license and will contribute to all work programs on the license pro rata to their shareholding.

Circle Oil (Panama) S.A. is operator of the joint venture and is currently assimilating and reinterpreting all available information on the license block before commencing its Panama exploration program later this year.

Commenting on the agreement David Hough, Chief Executive of Circle Oil, said:

"I am pleased to welcome Montage to our Panamanian operations as our partners. This promises to be an excellent opportunity for both companies and I look forward to updating shareholders with further progress in this project later in the year."