Irish independent Circle Oil Plc announced today that its subsidiary, Circle Oil Tunisia Ltd., has increased its stake in the offshore Mahdia license to 100%, after acquiring the remaining 30% working interest from Tethys Oil & Mining Inc. for US$3 million.
Circle Tunisia has identified multiple leads following a recent 3D seismic survey over the license area. The company is highlighting two prospects: El Medouini and West El Medouini, containing an estimated 125MMbo and 75 MMbo unrisked, most-likely reserves, respectively. Circle will need to drill at Mahdia by 19 July 2014.
Prof. Chris Green, CEO Circle, said: "We are pleased to announce this acquisition which increases our working interest to 100% in this prospective offshore permit and is another step in strengthening our portfolio. The increased interest provides us with greater flexibility for progressing this permit, and maximising value in the event of a successful well."
Last week, Circle announced a farm-in agreement with Exxoil SA for the the Beni Khaled production licence, centered in the Cap Bon (Watan el-kibli) peninsula, a headland in far northeast Tunisia, bordering the Gulf of Tunis.
Circle will acquire an initial 30% interest in the Ben Khaled license, in return for funding a 50sq km 3D seismic program and one well, with Circle's funding expected to be US$5 million. Circle can increase its share
to 50% in two equal stages by funding one well in each stage up to US$2 million per well. Exxoil will remain as operator.
3D seismic acquisition over Beni Khaled is planned for late 2013 to early Q1 2014. The first well will be spudded Q3 2014.
Circle Oil is focused on exploration and production in the Middle East and northern Africa, with assets in Morocco, Tunisia, Oman, and Egypt. The company's annual general meeting will be held in Dublin on 6 September 2013.
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