Exploration firm Circle Oil has begun drilling at its prospect in the Ras Mamour permit area of southern Tunisia. Arthur Beesley, Senior Business Correspondent, reports.
The drilling, in partnership with Exxoil Tunisie Ltd, is expected to continue for about two months. The well is targeting the two main reservoir types in the area.
These include parts of the Cenomanian Zebbag formation, which forms the main reservoir of the nearby Ezzaouia oilfield, and the Upper Jurassic sands levels of the M'rabtine formation, which are also productive in the Ezzaouia field.
"Today marks the start of an 18-month series of field-based operations for Circle in North Africa and the Middle East. Over the next few months, we plan to drill three wells in Tunisia and begin 3D seismic studies on our Moroccan Rharb Basin licence," said Circle chief David Hough.
Two months ago, Circle raised a $30 million (€22.4 million) convertible loan with Kuwaiti group KGL Petroleum, money which will be used to part-fund its drilling programme in Tunisia and Morocco.
KGL has gas and oil investments in upstream, midstream and downstream sectors. The group, whose parent Kuwait & Gulf Link Transport Co, is involved in the transportation sector, aims to be a leader in the energy sector both locally and globally.
Circle is drilling a minimum of nine wells on its Moroccan and Tunisian licences to the middle of 2009, together with all ancillary seismic and technical studies. The company is seeking gas at its Moroccan prospects, which are in the Rharb basin inland from Rabat.
The KGL loan has an attached option which offers potential for Circle to raise a further $15 million from the organisation within the next three years.
