Exploration investments pay off for Circle Oil

Circle Oil said it had been rewarded for increasing exploration and development with significantly improved profitability in the first half.

The oil and gas firm, which is focused on the Middle East and North Africa, said pr-tax profits came in a t $13.35m, compared to $8.7m a year before.

Group turnover increased by 23% to $35.4m, with earnings per share increasing to 2.37c.

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However, there was no mention of a dividend.

The company's Moroccan gas sales doubled, with daily production in the country rising to 4.3-4.5 million standard cubic feet per day, following the completion of the new 55 km gas pipeline.

Circle said it anticipated further increases before the year end and into 2013.

The firm added that it continued to enjoy success with drilling activities in Egypt where the focus of activities had shifted to production and resource management.

Cash balances at the end of June totalled $13.8m and this position improved post period end as a result of increasing payments received from the Egyptian General Petroleum Company, resulting in a cash balance at the end of August of $15.5m.