Circle Oil, the Limerick-based oil and gas exploration company that is quoted on the Alternative Investment Market in London, has reported positive results from tests carried out at its LAM-1 well in Morocco.
The company said the first well drilled on the Lalla Mimouna permit has flowed gas on test. The target flowed gas 1.9 million cubic feet of gas per day and the secondary target at 1.1 million cubic feet. The rig has now been relocated to drill the ANS-2 well on the northern flank of the Anaba ridge.
"We are delighted that our first well on the Lalla Mimouna Nord Block has such positive results, flowing gas at significant rates from both target intervals. The productivity of this first well is very encouraging for the expansion of Circle's portfolio of Morocco gas fields," said Circle chief executive Mitch Flegg.
Circle Oil, which is focused on oil and gas exploration and production in Morocco, Tunisia, Oman and Egypt, has a 75 per cent interest in the Lalla Mimouna permit.
The company earlier this month reported revenue of $84.6 million for 2014, down 9 per cent on the previous year. Group operating profit, before write offs and impairments, was down 28 per cent, to $23.3 million. Pre-tax loss for the year was $53.9 million. The previous year the pre-tax profit was $28.8 million.
