StockMarketWire.com
Circle Oil has suspended the ANS-2 exploration well on the Lalla Mimouna permit, onshore Morocco, after it failed to meet pre-drill estimates.
ANS-2 was the second well drilled by Circle on the Lalla Mimouna permit, following the successful LAM-1 well. The ANS-2 well targeted the Miocene sands and the TD of the well, at 1,070 metres MD, was reached on 29 June 2015.
Although the well encountered gas shows whilst drilling at the targeted depth, the interpretation of wireline logs indicates that the reservoir quality encountered in the well has not met the company’s pre-drill estimates. The well has been suspended pending further analysis of all the data before a decision is made on whether or not to complete the well.
The rig is now being mobilised to drill the NFA-1 exploration well, the third well of our drilling campaign on Lalla Mimouna. The NFA-1 structure is located in the southern part of the Lalla Mimouna Nord Permit and is a downthrown location along the North-South trending Menadra fault in the south-eastern area of the Lalla Mimouna 3D survey. The well is targeting two potentially gas-bearing zones in the Miocene sands.
Circle says the targets exhibit strong seismic amplitude anomalies, attributed to gas filled porous sands, analogous to those proven by the successful drilling of similar features in the Sebou permit to the south. Depending on progress rates, initial results could be available in approximately 30-40 days.
Chief executive Mitch Flegg said: “The ANS-2 exploration well has provided important data to help further our understanding of the Lalla Mimouna permit. We will now interpret this along with the results from the recent successful LAM-1 well test before we decide on whether to complete and test ANS-2. Meanwhile we look forward to the continuation of the drilling campaign in the Lalla Mimouna Nord and Sebou Blocks.”
The Lalla Mimouna permit is a partnership between Circle Oil Morocco Ltd (75%) and ONHYM (Office National des Hydrocarbures et des Mines) (25%).
At 8:47am: (LON:COP) Circle Oil PLC share price was -0.75p at 8.88p
