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.

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."