Circle Oil reports record production growth as revenues rise 27% to $93m

Limerick-based explorer, Circle Oil intends to expand its presence in northern Africa in a bid to increase shareholder value, after reporting record revenue and production growth for last year.

The company — whose operations are spread across northern Africa and the Middle East — yesterday reported revenues of just over $93.3m (€68.7m) for 2013; up by 27% on the previous year.

Operating profits of $32.3m constituted a 15% annual rise, while earnings before interest, tax, depreciation and amortisation were up by over 30% at almost $51.3m.

Cash generated from operations amounted to nearly $53.4m, as of the end of December, up by 36% annually; and Circle had over $26m in available cash at the end of the year; nearly 40% more than 12 months previously.

Circle’s record revenues were matched by best ever production levels from its operations in Egypt and Morocco. Production averaged 1,069 barrels of oil per day in the latter, and 10,443 bopd in the former. Gross production from Egypt as of the end of last month, was 12,432 bopd, of which nearly 5,000 is net to Circle.

Company chair Stephen Jenkins said management is focused on progress and the next 24 months will be “an exciting period” with considerable activity being undertaken at all of the company’s licence areas.

“Circle has a significant portfolio of assets, with considerable potential to create value for shareholders. As chairman, I am keen to see the inherent value of the portfolio unlocked and to identify additional assets to further grow shareholder value,” he said.

“It is our intention to add additional projects in this area [the Middle East and North Africa] to increase the value of the company.

“We are continuously evaluating projects and opportunities — both organic and inorganic — and continue to see great potential in the region in which we operate,” Mr Jenkins added.