News

June 23, 2009

Circle Oil Posts 2008 Results As It Readies For Production Growth In 2009

Losses widened at Circle Oil last year, from US$2.7 million in 2007 to US$10.7 million in 2008, as foreign exchange losses took their toll. Indeed, the headline number bears little relation to the successes the AIM firm is enjoying on the ground, where mounting production from its North African licences is set to deliver substantial revenues going forward.

The company, which ended December 2008 with US$32.7 million in cash, is currently nearing the end of a 15-well programme.  Twelve wells have been drilled, of which nine found commercial hydrocarbons, with two more that intersected hydrocarbons yet to be tested. 

In Morocco, the company has had a string of successes since drilling work began in early November, with five wells successfully tested at a combined rate of over 48 million cubic feet per day with one well, DRJ-6,...