By Alex MacDonald
LONDON–Circle Oil PLC (COP.LN) said Wednesday that it is looking to drill its second well, CGD-12, at the Sebou permit in Morocco.
The second well will test a dipping fault at 1,021 meters in the Guebbas Formation within which many of the previous discoveries have been successfully drilled.
Depending on progress rates the well is expected to take approximately 30 to 35 days to drill, the Middle East and Africa-focused company said.
Circle Oil owns 75% of the Sebou and Lalla Mimouna permits in Morocco, while the state’s Office National des Hydrocarbures et des Mines owns the remaining 25% stake. Cricl Oil has the right to convert to a production license in the event it finds oil.
The company is already producing around 6.8 million cubic feet to 7 million cubic feet of gas per day from the Sebou permit.
Circle Oil’s shares were up 1.6% at 23.25 pence a share, giving the company a market capitalization of GBP129 million or $216 million.
-Write to Alex MacDonald at alex.macdonald@wsj.com
