THIS NEWS WILL CERTAINLY MAKE THE SHARES INCREASE WHEN IT IS ANNOUNCED.


In March 2003, First African Oil Corporation, a wholly owned subsidiary of
Circle signed a two year exclusive reconnaissance licence with the Government
of Namibia covering approximately 146,000 km2, an area more than half the size
of the UK. The Licence is one of the largest in Africa and the Namibian
Government holds a 10% carried interest. Within this concession area, and with
the benefit of a valuable dataset of previously acquired technical information,
Circle believes there is potential to produce significant quantities of
valuable hydrocarbons. An aerogravity survey was carried out during the summer
at a cost of 415,000 and initial results of the survey are very encouraging.
The final report on this programme is due within the next few weeks.

Morocco Sebou Permit -Exploration Well KAB-1bis
Circle Oil Plc (AIM: COP) provides the following information on the drilling of the KAB-1bis well in the Sebou Permit, onshore Morocco.

The well, located downthrown tothe north-west/south-east trending N'zala Fault in the north-western area of the Sebou 3D survey, spudded on 4 February 2015. The 2010 KAB-1 well had encountered gas shows in the target Miocene Guebbas sands, but problematic swelling clays created borehole instability and the well could not be logged or tested. KAB-1bis had the same target sands and was drilled with an adapted mud system to minimise drilling problems in a slightly more updip location. The primary target Guebbas sands were absent down to a TD of 1,410 metres MD and it was decided to plug and abandon the well. This result indicates that the gas shows encountered in the Guebbas sands in the KAB-1 well were of a very limited extent.

The rig has been released to complete and test the SAH-W1 well on the western area of the Sebou Permit. The SAH-W1 well encountered three gas bearing Guebbas sands, but could not be completed as a non-standard 4.5 inch liner was needed. It is planned to produce the three zones sequentially from the bottom up, where the highest pressure is present.

Commenting on the results of the KAB-1bis well Steve Jenkins, Chairman, said:

"Although the result of the KAB-1bis well is disappointing, the well was targeting a smaller incremental accumulation. We look forward to the results of testing of the SAH-W1 well and continuation of the drilling campaign on the Sebou and Lalla Mimouna Nord Blocks."

StockMarketWire.com
Circle Oil is 'delighted' with preliminary results of testing of the well SAH-W1 in the Sebou permit, onshore Morocco.

The well is located within the western-central area of the Sebou Permit, about 3.2 kilometres to the south-west of the main gas gathering station. The well was drilled to a TD of 1,263 metres MD in June 2014, with gas shows encountered at different levels within the target Guebbas sands.

As is normal practice, Circle will produce from the lowermost Guebbas zone followed by the Main Guebbas zone sequentially from the bottom up, where the highest pressure is present.

The lowermost Guebbas zone has 3.6 metres of net pay and the test over this interval flowed at a sustained rate of 4.94 MMscf/d on a 24/64" choke during a period of 5 hours.

The rig has been released from SAH-W1 and is being transported to the Lalla Mimouna concession to drill Circle's first well on this permit, LAM-1. This will be the fifth well of the current drilling campaign and is located in the central part of Lalla Mimouna Nord on the east-west trending Anasba Ridge, within the existing 3D seismic area.

The target of the LAM-1 well is for Miocene gas-bearing sands, similar to the Sebou discoveries made previously by Circle. The primary target sands are prognosed at a depth of 1,231 metres MD and the TD of the well at 1,521 metres MD. Further wells in Lalla Mimouna and Sebou permits will follow to complete the current programme.

Chairman Steve Jenkins said: "We are delighted with the results of the SAH-W1 well test. This was the first well of our third drilling campaign, drilled with our partner ONHYM in the Sebou permit and is coupled with our drilling programme in the Lalla Mimouna permit. We believe that this well has the potential to add significant volumes to our reserves for gas production and at rates not subject to price fluctuation due to fixed price contracts."

StockMarketWire.com
Circle Oil reports positive results from the first well on the Lalla Mimouna permit onshore Morocco.

LAM-1 targeted the Miocene gas-bearing sands, similar to the Sebou Permit to the south of Lalla Mimouna. The TD of the well at 1,541 metres MD was reached on 26 May 2015, prospective gas zones were logged, a completion string was installed and the rig relocated to drill the ANS-2 well.

The LAM-1 well was then tested using a slick-line unit following the release of the rig. The primary target was perforated at 1,261-1,272 metres and flowed gas at a stabilised rate of 1.9 MMscf/d on a 16/64" choke and the secondary target was perforated at 1,181-1,183 metres MD and flowed at a stabilised rate of 1.1 MMscf/d on a 16/64" choke.

The rig has been mobilised to drill the ANS-2 well, the second well of Circle's drilling campaign on Lalla Mimouna, located on the northern flank of the East-West trending Anasba ridge. This well has a primary target for Miocene gas-bearing sands at 1,007 metres MD and prognosed TD at 1,062 metres MD. Depending on progress rates, initial results could be available in approximately 20 days.

Chief executive Mitch Flegg said: "We are delighted that our first well on the Lalla Mimouna Nord Block has such positive results, flowing gas at significant rates from both target intervals. The productivity of this first well is very encouraging for the expansion of Circle's portfolio of Morocco gas fields."

The Lalla Mimouna permit is a partnership between Circle Oil Maroc Ltd (75%) and ONHYM (Office Nationale de Hydrocarbures et des Mines) (25%).

What's your take on these Harry?

It's one I have watched for a long time, but haven't invested in recently. I am wary of all small drillers atm. Most of them are struggling due to the low price of oil and even good drilling results don't seem to help the sp. I will maintain a watching brief for the time being.

Thanks - I'll watch you watching them for my clues! :-)

Another small driller in trouble at 0.5p

StockMarketWire.com
Circle Oil says its financial position remains under significant pressure and it expects its listing on AIM to be cancelled tomorrow (30 December).

An update says: "Further to the announcement of 30 September 2016, in which Circle Oil plc, the international oil and gas exploration, development and production company, announced that the most recent waiver in relation to the suspension of the December 2015 and June 2016 redetermination and any repayments due under its reserve based lending facility was due to expire, the Company is pleased to announce that International Finance Corporation ("IFC"), a member of the World Bank Group and other syndicate members have agreed to re-instate the waiver until 26 January 2017.

"In addition to the waiver noted above, in light of the current financial position of the Company, the IFC and other syndicate members have again agreed to defer interest payments due in July and November 2016 until 26 January 2017.

"IFC and a syndicate member have also agreed to provide additional stand-by funding to finance the Strategic Review process through to conclusion. The additional stand-by funding has been agreed pursuant to an interim funding deed between IFC, the Company and the Company's subsidiaries and shall be used for the purposes of the Strategic Review process. Any advances will be repayable by 31 January 2017.

"In the event the Company draws down on the facility any payments received from the Egyptian General Petroleum Corporation (EGPC) during the period to 31 January 2017 shall be applied to reduce the amount drawn. The effective interest rate for the standby funding is 15% per annum plus three-month LIBOR.

"The Company's financial position remains under significant pressure. As a result of the deferral of the IFC interest payment and the standby funding, the Company is in a position to discharge its financial obligations during the period of the waiver, pending resolution of the lender redemption notice received from Circle Link S.ar.L. The Company is continuing to discuss its position with Circle Link.

"The strategic review process remains ongoing. The directors continue to expect there will be no value attributed to Circle equity holders as a result of the strategic review process.

"As noted in the announcement of 30 September 2016, the company's shares were suspended from trading on the AIM market of the London Stock Exchange on 29 June 2016. In the event the suspension is not lifted, the company's listing on AIM will be cancelled after six months of suspension, as set out in the AIM Rules for Companies. The company therefore expect that its listing on AIM will be cancelled with effect from 30 December 2016."