News

September 01, 2009

Circle Oil Reports Another Drilling Success On the Al-Amir Field In Its NW Gemsa Concession In Egypt

One thing you can say about Aim listed Circle Oil is that they make life easy for the headline writer. The words: “Another well comes good for Circle” spring to mind each time you see a press release. Actually they have sunk ten successful wells out of a total of 13 in their current campaigns. Nothing lasts for ever of course, and seven years of plenty could be followed by seven years of famine (just to really mix my metaphors). In more prosaic terms it will be a bit of time yet before the company sees meaningful cash flow. But for the moment such is the frequency of successful wells not just in Egypt but also in Morocco, you have to believe that the company is doing something very right with its geology and drilling or that it is blessed with more than its fair share of good luck.

The latest announcement is that the Al-Amir SE-3 appraisal well was successfully drilled following sidetracking in the onshore North West Gemsa Concession in Egypt. The well tested 40 degree API oil and gas in the Kareem Shagar Formation at a sustained average rate of 2,395 bopd and 2.2 million cubic feet a day using a 32/64 inch choke, from 35 feet of net pay. Short term testing achieved a rate of 4,938 bopd and 8 million cfd with a 64/64 inch choke. A full evaluation is underway. An...