Irish Independent
By Thomas Molloy
CIRCLE Oil, a Limerick-based exploration company, said pre-tax profit jumped 53pc in the first half of the year as the company sold more gas at higher prices.
Circle posted profits of $13.35m (€10.6m) as sales advanced 23pc to $35.4m.
Sales rose as gas production doubled and prices also moved upwards.
“Circle Oil’s interims show a substantial improvement over 2011 and are ahead of our forecasts,” saidInvestec analyst Keith Morris.
AIM-listed Circle is producing gas and oil in Tunisa and Morocco and aims to begin looking for oil in five new wells in Morocco later this year.
It also has plans to begin production in Egypt and off Oman’s coast next year.
A new pipeline in Morocco pushed up gas production by as much as 4.5 million cubic feet per day, chief executive Chris Green said.
That could rise further by the end of the year, he added.
“Cash generation rose strongly and we expect further growth in the second half — more than sufficient to fund the exploration programme which should get more active towards year end,” Mr Morris added.
– Thomas Molloy
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