Circle Oil abandons exploration well in Tunisia

published 28 December 2012

Circle Oil has plugged and abandoned the Bou Argoub-1 exploration well in the South West Belli area of the Grombalia permit in Tunisia following insufficient results.

The well came up dry after it was drilled to a total depth of 1520 metres, which commenced in October.

Oil and gas shows were encountered in the Bou Dabbous reservoir rock from 1109.5 to 1199.5 metres while weak oil and gas shows were detected in the Abiod formation from 1432.5 to 1520 metres.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

While the initial results from the Bou Dabbous formation showed some promise, Circle said log analysis from the limestones at the location revealed insufficient reservoir quality and hydrocarbon saturation to produce hydrocarbons at commercial rates.

Chris Green, Chief Executive Officer of Circle, said: "We have encountered a good thickness of reservoir rock showing the presence of hydrocarbons in the Bou Dabbous formation. This is a proven hydrocarbon producing area with both current and historic production in production licences within and around the concession. Reservoir quality and hydrocarbon saturation is known to vary across the acreage. As a result, the upside prospectivity of future targets remains."

Circle will now fill in the well before moving the rig south to the Ras Marmour permit in preparation to drill the Sedouikech exploration well.

Sedouikech will be drilled to a planned total depth of 2350 metres targeting the Early Cretaceous Lower Meloussi sands, productive in the nearby Robanna and Mazrane fields.