OIL AND gas exploration company Circle Oil yesterday reported positive results from an appraisal well in Egypt.
The company, which is headquartered in Limerick, said an average flow rate of 1,575 barrels of oil per day and 1.65 million standard cubic feet per day of gas, was achieved during initial testing at its sixth appraisal well in the Al Amir SE discovery area.
“Planning and execution will now be concentrated on good field management and development with a view to the optimisation of resources and production, together with the commencement of gas production,” chief executive Prof Chris Green said in an operational update yesterday.
Circle Oil’s gross production from its Al Amir SE and Geyad development fields in Egypt’s Gulf of Suez basin is expected to be between 7,000 and 8,000 barrels of oil per day “for an interim period”, after which production levels will be increased, it said.
Meanwhile in Oman, where Circle also has exploration assets, a seismic survey programme is on schedule to begin in December, and is expected to be finished in January, it said.
Circle is also proceeding with plans to increase its holding in Tunisia, and to begin drilling a commitment well in early 2011.
In September Circle announced that its sales of oil and gas increased to $21.3 million (€16.6 million) in the first half of 2010, compared to $3.5 million during the same period last year. It posted a profit after tax of $2.1 million, compared to a loss of $15.9 million in the first half of 2009.
