Vegas and Partners Hit Paydirt at NW Gemsa Appraisal Well

Circle Oil has announced initial results from the Al-Amir SE-3 appraisal well, which has been successfully drilled following sidetracking in the onshore North West Gemsa Concession in Egypt.

Circle is delighted to confirm the well tested 40 degrees API oil and gas in the Kareem Shagar Formation at a sustained average rate from 35 feet net pay of 2,395 bopd and 2.2 MMscfd using a 32/64" choke. Short term testing achieved a rate of 4,938 standard bopd and 8MMscfd with a 64/64"choke.

A full technical evaluation of all the results is underway to further assess the resource and to permit development planning. An assessment of reserves has not yet been completed. The well was completed as a potential producer with the testing being carried out once the rig, Mubarak-1, moved to commence drilling the Al Amir SE-4 appraisal well.

The NW Gemsa concession covers an area of over 400 square kilometers and lies about 300 kilometers southeast of Cairo, in a partially unexplored area 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. The NW Gemsa Concession partners are Vegas Oil and Gas (50% interest and operator), Circle Oil plc (40% interest) and Premier Oil plc (10% interest).

Commenting on this latest discovery, David Hough, CEO of Circle, said, "We are obviously delighted that the Al Amir SE-3 appraisal has been successful. These appraisal wells are adding important information to our knowledge of the Al-Amir SE area including more data necessary for reservoir model development. With the infrastructural engineering for the Geyad -1 discovery now completed, we are pushing ahead to achieve an increase in near term production as soon as possible. The rig has now spudded the third appraisal well on the field (Al-Amir SE-4). This appraisal location, which is regarded as a higher risk location, also has the alternative role of being potentially suitable to be used as an injector to provide pressure support should that be needed in the future."