Circle Oil ramps up production in Egypt

published 3 May 2012

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.

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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.