Circle Announces Morocco Well Test

Circle Oil plc, the international oil and gas exploration, development and production company, announced Friday that the KSR-8 well, the most promising of the 2008/09 Moroccan drilling campaign in its Sebou Permit, has commenced extended test production. This follows the completion of engineering works and surface facilities construction.

As announced in our December 2009 operational update, following completion of furnace maintenance by our consumer in the first quarter 2010, production in the permit will increase to a range determined by the consumer's day to day requirements but will not exceed 2.5MMscfd until the planned new 6" gas trunkline capable of delivering 16.0MMscfd is installed. Engineering, planning and preparations for the new infrastructure continue. With the start of production from KSR-8 other producing wells in the area will be periodically shut in for pressure build up tests as part of technical evaluation.

In line with expectations, the prognosed winter rainfall and associated flooding in the Rharb Basin has occurred and work on the new drill sites has been temporarily curtailed. Civil engineering work and drilling will recommence when conditions permit.

David Hough, CEO Circle Oil, said:

"We are pleased to have KSR-8 in production which sets the stage to increase production significantly once the new trunkline is installed. The last year has been transformational for Circle and this new production starts 2010 on the right note with much to look forward to this year. I wish to thank those who have supported us during 2009 as Circle continues its growth in each of its operational areas."