Circle Oil exploration well finds more gas in Morocco

LIMERICK-headquartered international oil and gas exploration company Circle Oil has found more gas at its operations in northern Africa, which could well present serious benefits for the company and local population alike.

The latest find comes as a direct result of test drilling at the company’s KSR-10 exploration well in the Sebou Permit in Morocco’s Rharb Basin and follows a previous successful gas find there.

The well first tested gas at a sustained rate of 10.6 mmscf/d (millions of standard cubic feet per day); while additional gas pay zones of 4.4 metres, 3.1 metres and 1.4 metres in three areas of the well were found.

The well is now being completed as a potential producer, according to Circle. It added that a full technical evaluation of all the results of the well is under way and that this will allow for “forward planning as a pre-cursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves.”

“I am pleased to report that we have continued our drilling success in Morocco’s Rharb Basin. The KSR-10 well has been completed and, once required, will be available for future production,” said Prof Chris Green, Circle’s chief executive.

The vast majority of gas generated from Circle’s assets is expected to be sold for local use, which could see cheaper consumer prices in the country and Circle profit from beneficial wholesale pricing structures. Up to 96% of Morocco’s gas usage currently comes from imported reserves.