Circle Oil abandons exploration well in Tunisia

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.

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.

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.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021