Circle Oil's first-half sales rise to $21.3m

CIRCLE OIL’S sales of oil and gas increased to $21.3 million (€16.6 million) in the first half of 2010, compared to $3.5 million during the same period last year.

The Limerick-based company posted a profit after tax of $2.1 million, compared to a loss of $15.9 million in the first half of 2009.

Since June 30th, the company has raised $65 million in a secondary placing of new shares.

The proceeds of the placing, which took place in August, would be used to accelerate the development of its portfolio and to acquire additional assets, Circle said.

In a trading update yesterday, the Aim-listed company, which primarily operates in north Africa and the Middle East, said daily production levels in its Egypt interests continued to increase, and it was now planning to bring the associated gas into production.

In Morocco, a second drilling campaign has got under way and the company intended to bring the additional gas wells in Morocco on stream by adding a larger capacity pipeline. This should result in a healthy increase in revenues, the company said.

The company had total assets of $147.6 million at the end of June and net assets of $84.5 million.

Chief executive Prof Chris Green said the company’s performance in the first half of the year was an “excellent achievement for a relatively early stage company”.

“We have recorded our first operating profit amounting to $4.6 million for the half year 2010 and this augurs well for the future. In addition, the group generated $12.9 million cash from operations during the period.”

Circle Oil listed on the Aim exchange in 2004. It has assets in Morocco, Namibia, Oman, Egypt and Tunisia. Incorporated in Ireland, its has a technical services centre in Berkshire, England.