Circle Oil posts positive appraisal drilling results

Circle Oil, an international oil and gas exploration, development and production company, has said the Geyad-6 well in Egypt, which begun drilling in September, has now been placed on production at an initial flow rate of 913 barrels per day (bpd).

Circle Oil, an international oil and gas exploration, development and production company, has said the Geyad-6 well in Egypt, which begun drilling in September, has now been placed on production at an initial flow rate of 913 barrels per day (bpd).

The well encountered seven foot of net pay and flowed oil and gas on test at an average rate of 1,559 bpd and 1.346m square cubic feet per day, respectively.

Following the successful completion of the Geyad-6 ST1 well, the rig has been mobilised to drill the infill production on the Al Amir SE 13 well.

Currently production from the AASE, Geyad and Al Ola fields is approximately 9,100 bopd (gross). Cumulative production from the NW Gemsa Concession has now exceeded 9.4m barrels of 42 degree API Crude oil and water injection has now reached a cumulative injection of approximately 6.4m barrels.

Chief Executive Officer Prof Chris Green said: "Circle is pleased with the results of the Geyad-6 ST1 well, completed as a Shagar oil producer. This well result further proves up the northern extent and pressure communication of the Geyad field and will add to the ultimate recovery from the field. The rig has now being moved to drill the AASE-13 well, which is intended as a central western infill producer, for the AASE field well and is part of the overall plan to improve the productivity of the NW Gemsa accumulations."

On Monday Investec reiterated its buy rating on the stock, along with its 80p price target, saying: "Drilling is on track to improve the productivity of the NW Gemsa accumulations (COP 40%). Newsflow will focus on Tunisia, where a two well programme is scheduled to start soon. The stock trades at a significant discount to our core NAV [net asset value] of its existing producing assets in Egypt and Morocco of 28p."

NR

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023