Information  X 
Enter a valid email address

Circle Oil PLC (COP)

  Print      Mail a friend       Annual reports

Friday 29 April, 2016

Circle Oil PLC

Reserves and Contingent Resources Update

RNS Number : 7475W
Circle Oil PLC
29 April 2016
 

  

 

29 April 2016

 

CIRCLE OIL PLC

("Circle" or the "Company")

 

Reserves and Contingent Resources Update

Circle Oil plc (AIM: COP) the international oil and gas exploration, development and production company, announces the results of the Company's 2015 year-end reserves and resources assessment. The Company has engaged a new provider for the evaluation of its reserve and resource base, LR Senergy, a leading independent auditor of hydrocarbons. LR Senergy currently supplies reserves certification for the providers of the Company's Reserve Based Lending ('RBL') facility.

The results of the assessment are set out below and recognise production over the year, the current low oil price environment and are also impacted by the change in assessor. To reflect the downward revisions the Company expects to recognise an impairment charge in its financial results for the year ended 31 December 2015.

Egypt

In Egypt, the net Circle 2P reserves for the NW Gemsa Field as at 2015 year-end are 6.671MMboe.  Although this figure is lower than the 2014 year-end 2P figure of 12.49MMboe, a further 1.626MMboe has been re-categorised as P50 Unrisked Contingent Resources as at 2015 year-end. There was also net field production of 1.295MMboe during 2015.

Morocco

In Morocco, the net Circle 2P reserves for the Sebou Permit as at year-end 2015 are 0.980MMboe. This figure is lower than the 2014 year-end 2P figure of 3.74MMboe. Additionally, the P50 Unrisked Contingent Resources as at 2015 year-end are a further 1.183MMboe. There was net field production of 0.276MMboe during 2015.

 

 

 

Reserves

Table 1: Producing and Undeveloped Reserves

 

 

Gross on Licence

 

Circle Working Interest

 

Operator

 

 

Proved (1P)

 

 

Proved plus Probable (2P)

Proved , Probable plus Possible (3P)

 

 

Proved (1P)

 

Proved  plus Probable (2P)

Proved, Probable plus Possible (3P)

 

 

Oil & Liquids Reserves (MMstb)

Egypt

9.795

13.889

18.511

3.918

5.556

7.405

PetroAmir

Morocco

0.000

0.000

0.000

0.000

0.000

0.000

Circle

Total (MMstb)

9.795

13.889

18.511

3.918

5.556

7.405

 

Gas Reserves (Bscf)

Egypt

11.302

16.173

21.925

4.521

6.469

8.770

PetroAmir

Morocco

5.566

7.915

11.231

4.026

5.686

8.012

Circle

Total

(Bscf)

16.87

24.09

33.16

8.55

12.16

16.78

 

MMboe (based on nominal conversion 5.8 Bscf=1 MMboe)

Egypt

11.744

16.678

22.291

4.697

6.671

8.917

PetroAmir

Morocco

0.960

1.365

1.936

0.694

0.980

1.381

Circle

Total (MMboe)

12.703

18.042

24.228

5.392

7.651

10.299

 

Contingent Resources

Table 2: Unrisked Contingent Resources (Producing Fields)

 

 

Gross on Licence

 

Circle Working Interest

 

Operator

 

 

Low (P90)

 

Best (P50)

 

 High (P10)

Low (P90)

 

Best (P50)

 

High (P10)

 

 

Oil & Liquids Reserves (MMstb)

Egypt

0.000

3.386

7.957

0.000

1.354

3.183

PetroAmir

Morocco

0.000

0.000

0.000

0.000

0.000

0.000

Circle

Total (MMstb)

0.000

3.386

7.957

0.000

1.354

3.183

 

Gas Reserves (Bscf)

Egypt

0.000

3.936

9.407

0.000

1.574

3.763

PetroAmir

Morocco

3.627

9.166

19.453

2.715

6.861

14.529

Circle

Total (Bscf)

3.627

13.102

28.860

2.715

8.435

18.292

 

MMboe (based on nominal conversion 5.8 Bscf=1 MMboe)

Egypt

0.000

4.064

9.579

0.000

1.626

3.832

PetroAmir

Morocco

0.625

1.580

3.354

0.468

1.183

2.505

Circle

Total (MMboe)

0.625

5.644

12.932

0.468

2.809

6.336

 

                 

 

 

 

For further information contact: 

 

Circle Oil Plc (+44 20 7182 4913)

Mitch Flegg, CEO

 

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

James Rudd

Jonathan Wynn

 

Murray (+353 1 498 0300)
Joe Heron

Pat Walsh

 

In accordance with the guidelines of the AIM Market of the London Stock Exchange the technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Executive Officer of Circle Oil plc. Mitch Flegg, who has over 34 years of experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies.

 

Mitch Flegg holds a BSc in Physics from Birmingham University and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).

Reserves and Resources are categorised in accordance with the 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

Recoverable volumes are expressed as gross and net reserves or contingent resources.  Gross volumes are defined as the total estimated petroleum to be produced with an effective date of 1st January 2016.  Net volumes are defined as net entitlements attributable to the interests owned by Circle arising from the application of the Production Sharing Contract (PSC) terms in Egypt and reflecting the concession arrangements in Morocco.

 

 

      Glossary

 

Reserves

mean those quantities of petroleum estimated to be either on production or a firm commitment to develop has been documented and is recoverable with reasonable certainty to be commercially recoverable under current economic conditions and government regulations including prices and costs as of the evaluation date

Proved Reserves

mean those reserves which have a better than 90% chance of being produced.

Proved plus Probable Reserves

mean those reserves which have a better than 50% chance of being produced

Proved plus Probable plus Possible Reserves

mean those reserves which have a better than 10% chance of being produced

Oil & Liquids Reserves

includes Condensate & LPG converted to boe (1 stb condensate = 0.94 boe, 1 tonne LPG = 11.6 boe)

Contingent Resources:

 

the arithmetically summed resources attributable to those quantities of petroleum estimated to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies.

Low Estimate

in a resource size distribution this is the Low case or P90 (90% probability).

Best Estimate

in a resource size distribution this is the Base case or P50 (50% probability) or Mean volume.

High Estimate

in a resource size distribution this is the Upside case or P10 (10% probability).

MMstb

million  barrels of  stock tank oil

Bscf

billion standard cubic feet of gas

MMboe

million barrels of oil equivalent

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, and Egypt with a combination of low-risk, near-term production, and significant upside exploration potential. The Company's shares were admitted to trading on AIM in October 2004.The Company has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW Gemsa permit in Zeit Bay area of Egypt.

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, generating 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
 
END
 
 
MSCLFFVISLITFIR

a d v e r t i s e m e n t