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Circle has cash for ambitious 2013 plans

Tuesday, February 19 10:41:43

Limerick-based oil and gas explorer, Circle Oil, now has enough cash to launch an ambitious plan for 2013 and begin unlocking the latent value in its substantial portfolio, it said today.

In Morocco, it has six well drilling programme planned for H1 2013 in the Sebou and Lalla Mimouna Permits and has seen a 50pc increase in gross production from 4.5 MMscfd to between 6.5 and 7.0 MMscfd planned in Q1 2013.

In Egypt, Circle has a four well drilling programme comprising of one producer and three injector wells planned from now through to the end of July 2013. Gross production is averaging 9,091 bopd for January 2013 and there is additional production now onstream from 12 February 2013 with the start up of associated gas production at an initial rate of 9 MMscfd (1,638 boepd ).

In Tunisia it has a 300 sq km 3D survey in the Mahdia permit to be acquired during Q1 to delineate a drilling location for a well in 2013. Seismic vessel arrived Tunisia 15 February 2013.

In Oman, offshore 2D seismic survey of 855 km is to be completed on nearshore leads in Block 52 as a precursor to drilling in 2014.

It now has cash balances in excess of $20 million at end December 2012, up 40pc year on year and a working capital facility of $12.5 million secured to fund existing projects in Egypt thereby enabling Circle use its available cash for alternative projects. Circle is in ongoing discussions with respect to further senior debt to fund company growth plans, it said.

"Against the backdrop of significant change in the MENA region, Circle has used its experience in the region to consolidate its position and continues to make excellent progress in its core operations. As a result, Circle is now well placed and well funded to accelerate its operations in 2013 and begin unlocking the latent value in its substantial portfolio," said Prof Chris Green, CEO.