Circle Oil
www.circleoil.net
Circle Oil is an international oil & gas exploration and development Company with an expanding portfolio of assets in Morocco, Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term production and significant exploration potential.
8:33 am by Sergei BalashovPro Investors UK
The company expects production to increase further during the year, reaching between 8.13 and 8.48 mmcfpd in the final quarterCircle Oil (LON:COP) expects revenues from gas supplies to customers in Morocco to reach an annualised US$14 million next month after commissioning a new pipeline at its Rharb Basin permits.
This morning, the company told investors that the new pipeline at Rharb has been pressure tested, certified and commissioned, allowing the company to start supplying gas to local customers on February 1.
The total delivery through the pipeline currently amounts to 1.27 million cubic feet per day (mmcfpd), which is expected to increase to 3.18 mmcfpd by early March.
This will take total deliveries through the old and new pipeline to 5.3 mmcfpd with net revenues to Circle rising to US$14 million per annum.
The company expects production to increase further during the year, reaching between 8.13 and 8.48 mmcfpd in the final quarter.
“I am delighted to be able to report the successful start of commercial gas deliveries from our new pipeline in the Rharb,” said chief executive ofCircle Oil Chris Green.
“Circle and its partner have now begun to significantly increase gas supplies and associated revenues as the next step in further exploiting our Rharb acreage.”
Circle Oil currently holds a 75 percent interest in the Sebou and Lalla Mimouna permits with the remaining 25 percent held by partner ONHYM. The company also has a 60 percent stake in the Oulad N’zala permit and a 75 percent interest in the new pipeline.
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