Circle Oil Encouraged by Logging Results at Zita-1

Circle Oil has completed drilling and logging of the Zita-1 exploration well on the Zita Prospect in the Ras Mamour Permit, southern Tunisia (23% working interest). The well has encountered hydrocarbon shows with good fluorescence seen in cuttings in multiple zones and oil returning to the surface. The initial log interpretation has given sufficient evidence to warrant full testing, which is scheduled to take place before the end of this year. Until testing is completed no final conclusions can be drawn on the results of the well. A further news release will be issued once testing and the analysis and interpretation of the results is completed.

Commenting David Hough, CEO of Circle Oil, said:

"We are encouraged by the initial results of the Zita-1 well. Although the well has been difficult to drill, we have encountered shows of hydrocarbons at multiple levels. The log data is now being analyzed to finalize the testing program. If testing and evaluation are successful we hope that this would be followed by an early appraisal well program.”