Circle Oil Makes Additional Gas Discovery in Morocco

Circle Oil has announced that the KSR-8 well in the Sebou permit in the Rharb Basin in Morocco has been successfully drilled, logged and tested.

The KSR-8 well has tested two zones, the first in the Upper Hoot formation at a depth of 1755.5-1758 meters and the second, a twin sand, in the Main Hoot formation at depths of 1847.5-1849 meters and 1853-1863 meters, with net pay of 2.5 meters and 11.5 meters respectively.

The lower of the two zones in the Main Hoot formation flowed gas at a sustained rate of 12.48 mmscf/d through a 28/64" choke and produced no liquids. The zone in the Upper Hoot formation flowed at an average rate of 6.76 mmscf/d through a 24/64" choke and also produced no liquids.

The well is being completed as a potential producer. Full technical evaluation of the results is ongoing. Once connected to the local gas infrastructure an extended well test and full assessment of the reserves of the discovery will be completed.

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.

David Hough, CEO of Circle, said, "This discovery, which is our third success in three wells drilled in Morocco, is particularly pleasing as it has flowed under test at one of the highest flow rates ever in the Rharb. The well took considerably longer to complete than expected due to very severe flooding in the area over recent months making conditions extremely difficult. I would like to thank our drilling crew for their efforts under these conditions to deliver this excellent result.

"With ONZ-4 in production and ONZ-6, CGD-9 and now KSR-8 ready for connection into the local infrastructure, our plans to build up gas production in Morocco are developing very nicely. I look forward to the results of the next wells of our current drilling program across North Africa where our success rate now stands at 6 commercial discoveries out of 7 wells drilled."