Circle Oil sees 23% turnover rise

Exploration group minnow Circle Oil has reported a 23 per cent rise in turnover in the first half of 2012.

Overall turnover of $35.4 million (€28 million) was boosted by gas sales, which more than doubled in the period, and higher prices.

Profit before tax rose 53 per cent to $13.35 million in the period. The Limerick-based company, which is listed on the London Stock Exchange, is focused on north Africa, with interests in Morocco, Egypt, Tunisia and Oman.

Chief executive Chris Green said the company exploration and development activities - particularly in Morocco and Egypt - had been rewards with significantly improved profitability over the period.

Completion of a new pipeline saw daily gas production in Morocco rise to between 4.3 and 4.5 million cubic feet per day “with further increases expected before the year end and into 2013”, Prof Green said.

Chairman Thomas Anderson said the company’s share of oil and gas production in the first half of the year was in the 3,500-4,000 barrels of oil equivalent daily. He said this had risen to 4,200 at the start of the second half of the year. The company has a medium-term target of 10,000 barrel of oil equivalent per day.

With further drilling planned in Morocco and Tunisia and a transition to production in Egypt, he said the company’s plans for further exploration and development activity were well advanced.

During the first half, the company extended a $30 million financing arrangement for three years. The loan with a subsidiary of Kuwait-based PetroLink Holding Company was due to mature on July 19th of this year. The deal sees that extended to 2015, with the loan convertible into shares over the period.