Circle Oil Tests Positive Gas at Morocco's ONZ6

Circle Oil has announced that the exploration well ONZ6 has been drilled, logged and successfully tested in the Ouled N'Zala Permit, Morocco.

The Company confirms a discovery in the Upper Ouled Formation with the well testing gas at a sustained rate of 3.32 MMscfd. The well has been completed as a potential producer and the drilling rig has now moved to the Sebou permit to commence drilling the second location of the six well drilling programme planned for the two permits.

A full technical evaluation of all the results is underway which will allow for forward planning as a precursor to further assessment of the resource including conducting an extended well test. A full assessment of Reserves has not yet been completed.

The Ouled N'Zala Permit lies north-east of Rabat in the Rharb Basin, Morocco. The Rharb Basin is a foredeep Basin located in the external zone of the Rif Folded belt. The concession agreement includes the right of conversion to a production licence of 30 years, plus extensions, in the event of commercial discoveries.

David Hough, CEO of Circle, said, "This discovery in our first well in Morocco is excellent news for Circle. The well has been completed in readiness for an extended production test and the field test results are in line with our expectations for this area. We look forward to the results of the next well which will be the first in the Sebou Permit where Circle holds a 75% interest.''