Circle Oil issues Morocco update

International oil and gas exploration company Circle Oil has begun extended test production at a well in Morocco.

International oil and gas exploration company Circle Oil has begun extended test production at a well in Morocco.

Engineering works and construction of surface facilities at the KSR-8 well, which Limerick-based Circle Oil said was the most promising of the 2008/09 Moroccan drilling campaign in its Sebou Permit, have already been completed.

The company said production in the permit will but will not exceed 2.5MMscfd until the planned new gas trunkline capable of delivering 16.0MMscfd is installed.

Other producing wells in the area will be periodically shut in for pressure build up tests.

"We are pleased to have KSR-8 in production which sets the stage to increase production significantly once the new trunkline is installed," said chief executive David Hough.

"The last year has been transformational for Circle and this new production starts 2010 on the right note with much to look forward to this year."

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist