Circle Oil Confirms Al Amir SE-1 ST Discovery in Egypt

Circle Oil Plc

Circle Oil Plc has announced that the Al Amir SE-1 sidetrack well has been drilled in the onshore North West Gemsa Concession in Egypt.

The Company has confirmed a discovery in the Kareem Formation sandstones, with the well testing 41 degrees API oil and gas at sustained rates of 3,388 bopd and 4.25 MMscfd using a 64/64" choke. The well, which had been sidetracked after operational difficulties, is currently being completed as a potential producer.

A full technical evaluation of all the results is underway to permit forward planning as a precursor to further assessment of the resource. An Assessment of Reserves has not yet been completed.

The North West Gemsa Concession partners include Vegas Oil and Gas (50% interest and Operator), Circle Oil plc (40% interest) and Premier Oil plc (10% interest).

The NW Gemsa concession covers an area of over 400 square kilometers and lies about 300 kilometers southeast of Cairo, in a partially unexplored part of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production license of 20 years, plus extensions, in the event of commercial discoveries.

David Hough, CEO of Circle, said, "This discovery is excellent news. It is particularly pleasing combined with our gas production start-up in Morocco and our recent successful fund raising. These events leave the Company in a very strong position. They give us the option to bring the Al Amir SE-1 ST well into production quickly with infrastructure approximately 6 kms away and will also allow us to carry out our ambitious plan to drill 15 wells over the next 24 months on our North African licenses. It is indeed a busy and exciting time for Circle."