Limerick's Circle Oil reports first profit

Oil and gas exploration company Circle Oil has moved into profit for the first time.

The company today said it had recorded an operating profit of $12.58m for the year ended December 31, 2010, compared with an operating loss of $0.34m for the previous year.

Net profit was $10.36m, compared to a 2009 loss of $13.51m, while the company also recorded revenue from oil and gas sales of $44.39m, an increase of 194% on 2009.

"2010 was a milestone year for Circle as we moved into profitability," said company chairman Thomas Anderson.

"We have made considerable progress in our licence areas. Our model of moving rapidly from exploration and discovery to early production has proved to be highly successful and is allowing us to work with our partners to develop existing assets and to put in place the funding for future development.”