Circle Oil posts operating profit in 'milestone year'

CIRCLE OIL has recorded its first full-year operating profit, reversing losses in what it described as a “milestone” year.

The company said it made an operating profit of $12.58 million in 2010, while net profit was $10.36 million. Revenue from oil and gas sales rose by 194 per cent compared to a year earlier, to $44.39 million in 2010.

Circle Oil also raised $66.4 million in a successful placing during the year.

“2010 was a milestone year for Circle as we moved into profitability,” said chairman Thomas Anderson. “We have made considerable progress in our licence areas. Our model of moving rapidly from exploration and discovery to early production has proved to be highly successful and is allowing us to work with our partners to develop existing assets and to put in place the funding for future development.”

Circle Oil carried out an “extensive” drilling campaign in Morocco and Egypt throughout the year. Nine wells have been completed, with commercial hydrocarbons found and tested in eight. It said it was installing a new pipeline infrastructure to increase production at its Moroccan operations. It also intends to continue drilling in Egypt.