Profit at Circle Oil soared by 316 per cent, and turnover rose by 35 per cent in the first half of the year, fuelled by rising oil prices.

Net profit after tax was $8.7 million, compared with $2.09 million in 2010. The company said turnover was $28.7 million in the first six months of the year. Gross profit was $9.94 million, compared to $6.84 million in the first half of 2010, and operating profit rose to $8.28 million in 2011, compared with $4.6 million a year earlier.

The oil price achieved rose 40 per cent to $104.81 per barrel of oil, while gas prices increased by 27 per cent to $8.65 Mscf.

Circle said three gas wells were successfully tested in Morocco during the period, and construction was underway on new pipeline infrastructure. Chief executive Professor Chris Green said this should result in a "healthy increase" in revenues in 2012.

In Egypt, one oil producing and two water injector wells were successfully drilled during the period.

Prof Green said the company had made "excellent progress" in the six-month period.

"Our daily production levels in Egypt are anticipated to increase when the associated gas goes into production, augmenting the existing oil production. In Morocco, the second drilling campaign has added four new gas discoveries," he said. "In Oman, results from our recent Block 52 marine survey have identified a number of significant prospects. These will support our stated objective of farming out part of this licence to a suitable partner."