Circle Oil Makes Gas Discovery in Morocco

3 June 2009 (Last Updated June 3rd, 2009 18:30)

International oil exploration company Circle Oil has completed drilling at its CGD-10 exploration in the Sebou permit, Morocco. The company confirms a discovery in the lower Guebbas sequence with the well testing gas at a sustained rate of 3.9MMscfd from the primary target using a 24/6

International oil exploration company Circle Oil has completed drilling at its CGD-10 exploration in the Sebou permit, Morocco.

The company confirms a discovery in the lower Guebbas sequence with the well testing gas at a sustained rate of 3.9MMscfd from the primary target using a 24/64in choke. The perforated interval of 889.3m to 897m has a calculated net gas pay of 3.3m.

The secondary target of between 847.5m and 854.5m has a calculated net gas pay of 2m and testing of this interval will be carried out at a later date. The well is being completed as a potential producer.

A full technical evaluation of all the results of the well is underway. This will allow for forward planning as a precursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves, Circle Oil said.

The drilling rig will move to start drilling the final well of the planned six-well drilling programme in the area.

The Sebou permit lies to the north-east of Rabat in the Rharb basin in Morocco. The Rharb basin is located in the external zone of the Rif Folded belt.

The concession agreement, in which Circle Oil has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production licence of 25 years, plus extensions in the event of commercial discoveries.