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Circle Oil PLC (COP)

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Wednesday 04 March, 2015

Circle Oil PLC

Oman Operating Update

RNS Number : 4537G
Circle Oil PLC
04 March 2015
 



 4 March 2015

 

Circle Oil Plc

("Circle" or the "Company")

Shisr-1 well Block 49, Onshore Oman

Circle Oil Plc (AIM: COP), the Middle East and North Africa focused oil and gas exploration, development and production company, provides the following information on the Company's activities in Oman.

Oman Block 49 -Exploration Well Shisr-1

Further to the Financial and Operating update published on 12 February 2015, in which the Company announced the start-up for drilling of the well Shisr-1 in Block 49, onshore Southern Oman, a decision has now been taken to plug and abandon the well (which reached a measured depth of 1,650 metres) due to drilling difficulties, which have not been encountered to the same extent in previous wells in the area, no hydrocarbons were found. The primary target had been the Hasirah sands prognosed at a depth of 1,890 metres.

The Bottom Hole Assembly ("BHA") became stuck below the 9⅝ inch casing shoe which had been set at 819 metres. Multiple attempts were made to remove the BHA but these proved unsuccessful. Drilling information, confirmed by the Company's independent drilling advisor, suggests that the main problem zone is immediately below the casing shoe and further attempts to deepen or sidetrack this borehole are inadvisable.

The Ministry of Oil and Gas in Oman have given their approval to plug and abandon the well. As has been stated previously, management viewed this well as a high risk commitment well with a low probability of success.

 Chairman Steve Jenkins commented,

"This well was always deemed as high risk and the unexpected and disappointing conditions experienced in this well, designed as a slim-hole stratigraphic test, have been a challenge to our drilling team."

 

 

For further information contact:

 

Circle Oil Plc (+44 20 7638 9571)

Steve Jenkins, Chairman

 

Investec (+44 20 7597 5970)
Chris Sim
George Price

James Rudd

 

Liberum Capital Limited (+44 20 3100 2222)
Clayton Bush

Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir

 

Murray Consultants (+353 1 498 0300)
Joe Heron

Pat Walsh

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Stuart Harker, VP Geology, with over 40 years experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement. Dr. Harker holds a BSc (Hons) in Geology from the University of London (UK) and an MSc and PhD from the University of Saskatchewan, Canada. He is also a Fellow of the Geological Society of London and a Chartered Geologist.

Glossary

Bottom Hole Assembly - the portion of the drilling assembly below the drill pipe

 

Notes to Editors

Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production company holding a portfolio of assets in Morocco, Tunisia, Oman, and Egypt with a combination of producing assets, low-risk, near-term production opportunities, and significant upside exploration potential.  The Company listed on AIM in October 2004.

Internationally, the Company has continued to expand its portfolio over the past years and now has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia, and the Zeit Bay area of Egypt.  Circle also has the largest licensed acreage of any company in Oman with an ongoing exploration programme in Block 49 onshore.

Circle's strategy is to locate and secure additional licences in prospective hydrocarbon provinces and, through targeted investment programmes, monetise the value in those assets for the benefit of shareholders.  This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may opt to use its own expertise to appraise reserves and bring assets into production. Through either route the objective would be generation of sustained cash flow for further investment.

Further information on Circle is available on its website at www.circleoil.net.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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