Circle Oil well tests positive for production

INTERNATIONAL oil and gas explorer Circle Oil, which has a base in Limerick, has announced its Al Amir 1-ST2 well, originally drilled in 2008, has been tested for production.

The outcome, based on flow rates delivered on August 2 of 278 barrel of oil per day (bopd), has been positive.

Once the South Gharib production test and production engineering system is completed “the well is planned to be put on production and the oil trucked to the Zeitco terminal”, the group said in a statement issued yesterday.

Current production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is 9,200-9,500 bopd.

The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries.

The North West Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

Circle Oil Plc has an expanding portfolio of assets in Morocco, Tunisia, Oman and Egypt, with a combination of producing, low-risk near-term production and acreage with significant upside exploration potential, the group said.

Internationally, Circle has continued to expand its portfolio over the past two years.

Its range of assets include the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia and the Zeit Bay area of Egypt.

Circle also has the largest licence holding of any company in Oman.

Its shares were listed on the Alternative Investment Market (AIM) in London in October 2004.

It is incorporated in the Republic of Ireland and retains its registered office in Limerick.