Circle Oil posts rise in H1 revenues

Exploration company Circle Oil today announced revenue of $21.3m (€16.5m) for the first half of 2010, up from $3.5m (€2.7m) on the same period last year.

The company said profit after tax the six-month period to end June was $2.1m (€1.6m), compared to a H1 2009 loss of $15.9m (€12.3m).

The company said its daily production levels in Egypt have continued to increase and we it is now planning to bring the associated gas into production.

Meanwhile a second drilling campaign has commenced in Morocco with the company working to bring the additional gas wells there on-stream by adding a larger capacity pipeline, which it said should result in a healthy increase in revenues.

CEO Chris Green said he was "delighted with the continuing progress" of the company.

"Subsequent to 30 June a very successful funding was completed and $65m (€50m) raised in a secondary placing of new shares in August. The proceeds of the placing will be used to accelerate the company’s existing portfolio and to also acquire additional assets," he added.

"Overall this is an excellent achievement for a relatively early stage company.”