Circle Oil announces plans to drill 12 wells

Circle Oil said Tuesday it was planning to drill 12 wells this year across Morocco, Egypt and Tunisia.

Circle Oil said Tuesday it was planning to drill 12 wells this year across Morocco, Egypt and Tunisia.

The oil and gas explorer will fund the works from its cash balance of $20m at the end of December 2012, which was up 40% year-on-year.

A working capital facility of $12.5m was secured to fund projects in Egypt to allow Circle to use its available cash for alternative projects.

Four wells are planned for Egypt through to the end of July. Gross production averaged 9,091 barrels of oil per day in January.

In Morocco, six wells will be drilled in the first half of the year in the Sebou and Lalla Mimouna permits. A 50% increase in gross production from 4.5m standard cubic feet per day (MMScfd) to between 6.5 and 7.0 MMscfd is planned for the first quarter of the year.

A further two wells will be drilled in Tunisia including one onshore the Sedouikech prospect in the Ras Marmour permit, targeting 20m barrels of oil (MMBO) stock tank original oil on place (STOOIP), and one offshore the Mahdia permit, targeting up to 179 MMBO STOOIP.

"Against the backdrop of significant change in the [Middle East and North Africa] region, Circle has used its experience in the region to consolidate its position and continues to make excellent progress in its core operations," Chief Executive Officer, Chris Green, said.

"As a result, Circle is now well placed and well funded to accelerate its operations in 2013 and begin unlocking the latent value in its substantial portfolio."

Shares rose 1.53% to 16.62p at 10:30 Tuesday.

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

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021
Free 6 issue trial then continue to