Higher oil prices move Circle Oil to profit

Limerick-based oil and gas exploration and production company Circle Oil saw first revenues from operations in Egypt and Morocco and higher oil prices move them to its first gross profit in 2009.

The AIM-listed company announced their preliminary results this morning.

Circle has enjoyed exceptional success with the drill bit in the last year, with successful appraisal and exploration wells drilled in Egypt and Morocco respectively.

The company also has licences in Oman, Tunisia and Namibia.

Chairman Thomas Anderson welcomed the results and the success of the companies campaigns in Africa: "In 2010, Circle is continuing with its exploration and production programmes with further drilling in Egypt through additional appraisal wells and the likely commencement of injector support drilling.

"In Morocco, we will commence another drilling programme and proceed to install a new trunk line to permit increased production.

"As our oil production increases we are considering how best to lock in the prevailing high price of oil in light of current world economic indicators."