Circle Oil placing raises $65m

OIL and gas exploration company, Circle Oil, headquartered in Limerick, has raised $65 million (€49m), via a second share placing in 12 months, in order to aid its medium-term growth prospects.

The AIM-listed company — which mainly operates in northern Africa and the middle-east — announced the placing of 141.7 million new ordinary shares (at 30p per share) yesterday and said that the proceeds would go towards accelerating its exploration activities and realising its net production target of 10,000+ barrels of oil equivalent per day (boepd) over the next three years.

“With these fresh funds, we can accelerate our activities and we’re well positioned to take advantage of new opportunities emerging in our regions of operation. I believe this marks the beginning of a new period of growth for Circle Oil,” said the company’s chief executive Chris Green. Circle’s main two areas of interest are Egypt and Morocco — to date the only two regions where they have begun to produce from — although a significant part of the new funds will go towards furthering development at its assets elsewhere including Oman and Tunisia.