News

May 22, 2009

Circle Oil Strikes More Oil In Egypt As Its North African Investments Begin To Pay Off

In what now looks to have been a highly prescient move, Circle Oil took the decision in the summer of 2006 to shift its focus from high risk wildcatting in Oman and Namibia to low risk plays with near-term production potential in North Africa. It has proven singularly successful and, given the subsequent meltdown in the financial markets which has choked off credit to small cap explorers, highly fortuitous. Perhaps the Circle Oil team could start providing economic pointers to HM Treasury…

The AIM firm hasn’t done too badly on the geology front either.  The company took its first steps in this new direction when it signed an agreement with the Moroccan energy department, ONHYM, for the Sebou licence in the Rharb Basin, a known producing region close to local markets.  The Moroccan investment began to pay off last year when the ONZ-4 well came onstream and, with three more finds now awaiting hook-up, this is adding up to a nice little gas business with a possible...