Circle Oil announce operating update Morocco
Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following operating update.
Sebou and Lalla Mimouna Permits
The third drilling campaign in the Sebou permit and first campaign in the Lalla Mimouna permit has commenced with the spud of the SAH-W1 well in the Sebou permit.
The work programme initially includes the drilling of three wells in the Sebou permit followed by drilling in the Lalla Mimouna permit. In all, it is planned to drill 12 separate targets and although these have been chosen and approved internally the final locations of some wells may be amended in the light of drilling results. There is a large portfolio of prospects from which to choose, if alternative locations are required.
The 12 locations initially chosen are targeting resources of approximately GIIP of 25 bcf and the first well, SAH-W1, is targeting a dipping three way fault bounded sand lens with TD at 1,225 metres MD and primary targets in the Guebbas Formation at 1,060 and 1,160 metres MD. The Company’s pre-drill estimates are for GIIP of 1.85 bcf and 1.0 bcf respectively for the two targets.
It is anticipated that the drilling campaign will, at times, employ multiple drilling rigs in order to progress the campaign and provide as much continuous progress as possible.
Both the Sebou and Lalla Mimouna permits are a partnership between Circle Oil Morocco Ltd (75%) and ONHYM (Office Nationale de Hydrocarbures et des Mines) (25%).
The concession agreements include the right of conversion to a production licence in the event of commercial discoveries.
Production in Sebou has continued throughout H1 2014 at 6.8 – 7 MMscf/d gross.
Prof Chris Green, CEO, said:
“Circle is very pleased to announce the start of our third drilling campaign in Morocco. We have previously enjoyed significant drilling success in the Sebou permit and our technical team have worked hard to maximise opportunities and ensure this success continues. Reserve replacement and enhancement is the key to maintaining and uplifting our revenues in what we regard as a core country to invest in for the future. We sincerely thank our partner ONHYM for their continuing support and assistance as we start this third drilling campaign.”
Source: Circle Oi