OilVoice - Circle Oil Announces Successful Test of Al Amir SE-3 Well in Egypt

Circle Oil Announces Successful Test of Al Amir SE-3 Well in Egypt

Tuesday, August 25, 2009

Circle Oil plc, the AIM listed international oil and gas exploration and development company, announces initial results from the Al-Amir SE-3 appraisal well which has been successfully drilled following sidetracking in the onshore North West Gemsa Concession in Egypt.

Circle is delighted to confirm the well tested 40° API oil and gas in the Kareem Shagar Formation at a sustained average rate from 35 feet net pay of 2,395 bopd and 2.2 MMscfd using a 32/64" choke. Short term testing achieved a rate of 4,938 standard bopd and 8MMscfd with a 64/64”choke.

A full technical evaluation of all the results is underway to further assess the resource and to permit development planning. An assessment of reserves has not yet been completed. The well was completed as a potential producer with the testing being carried out once the rig, Mubarak-1, moved to commence drilling the Al Amir SE-4 appraisal well.

The NW Gemsa concession covers an area of over 400 square kilometres and lies about 300 kilometres southeast of Cairo, in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners are Vegas Oil and Gas (50% interest and operator), Circle Oil plc (40% interest) and Premier Oil plc (10% interest).