SHARES IN Circle Oil rose more than 12 per cent yesterday as its Canadian joint venture partner in an Egyptian concession declared positive results from their exploration work on an exploration project in the Gulf of Suez.
Circle, which is listed on the Alternative Investment Market in London, owns 40 per cent of the fourth well the southeast Al Amir field in the northwest Gemsa concession; a privately held Egyptian concern, Vegas Petroleum, owns 50 per cent of the well.
Its 10 per cent partner, Alberta-based Sea Dragon Energy, said in a notification to the Toronto stock market yesterday that the testing and placement of production on the well had been successful.
Sea Dragon said the fourth well was now “on stream”, adding that production from the northwest Gemsa concession should soon exceed 7,000 barrels of oil per day. The fourth well tested 40-degree American Petroleum Institute (API) crude oil from the Kareem Formation at a rate of 5,000 barrels of oil per day using one choke measurement and 2,580 using another. “The Kareem Formation in this well contained a gross pay section of 70 feet, which is the thickest pay found in the Al Amir SE [south-east] field thus far,” Sea Dragon said.
Circle said it noted Sea Dragon’s announcement. Circle shares gained 4.25p or 12.69 per cent to close last night at 37.75p, a price that implies a market capitalisation of £155.1 million (€171.38 million).
