Drilling results from Circle Oil's Al Amir SE and Geyad fields in Egypt have had a positive impact on group production, the firm announced today.
Appraisal well AASE-11X ST 1 was spudded on February 5th and, after being drilling to target depth, encountered 42ft of net pay in the Kareem Shagar sand and 22ft in the underlying Rahmi sand with oil-bearing sands present to the base of the reservoir.
The group said that production from the AASE and Geyad fields in Egypt averaged 8,264 barrels of oil per day (gross) in March. Following connection of the latest AASE-11X ST 1, average production has risen to 10,000 barrels of oil per day.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Cumulative production from the NW Gemsa Concession (containing the Al Amir and Geyad Development Leases) has now exceeded 7.9m barrels of 42 degree API Crude oil.
"Circle is very pleased that the AASE-11X ST1 well has been completed as a Shagar sand producer with good initial flow. This well result further proves up the north western flank of the AASE field," said Chief Executive Officer Chris Green.
Circle owns a 40% interest in the NW Gemsa Concession.
Investec reiterated its buy rating on the stock this morning, saying that shares are trading at a 20% discount to its core net asset value.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
