Circle Oil ramps up production in Egypt

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.

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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.

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