Limerick-based exploration firm Circle Oil sees revenue rise by 20%

Limerick-based explorer Circle Oil has vowed to further grow its business with increased drilling activity as well as more acquisitions, after reporting strong profit, revenue, and production gains in the first six months of the year.

The company — whose main geographical focus is in northern Africa — yesterday posted first-half revenues of $42.3m (€32m), up by 20% on the same period last year.

Profit for the period was up by 10%, year-on-year, at $14.7m; with earnings before interest, taxes and amortisation ahead, on an annualised basis, by 34% to $25.2m.

Production levels, from the company’s main assets in Egypt and Morocco, have reached nearly 6,200 barrels of oil equivalent per day — 47% higher than at the end of 2012. As of the end of June, the company had available cash of $23.5m — an increase of 92% on the same period last year.

Circle’s CEO, Chris Green, said the results reflect the company’s efforts and development activities, adding that the increased production levels “have been rewarded with further improved profitability”.

“Daily oil and gas production levels are at a record level, reflecting the benefit of previous investment and activity.

“We’re also starting to move forward on our other existing assets and the recently-added new Tunisian assets,” he said.

Last month, Circle acquired the remaining 30% it didn’t already own in the Mahdia exploration licence, off the coast of Tunisia.

Circle chairman Thomas Anderson said the firm is about to embark on further exploration activity in Morocco and Tunisia, which has the potential to “significantly enhance” the firm’s presence in both countries.

The company’s recent self-funded acquisition activity provides “a strong indicator” of management’s growth strategy and confidence in the Middle East and northern Africa, he said.