Circle Oil Plc, the international oil and gas exploration, development and production company, is pleased to announce its results for the year ended 31 December 2011.
In 2011, the Company participated in the drilling and testing of three successful gas discoveries in Morocco. Two wells (ADD-1 and KSR-11) were drilled and tested successfully in 2011, to complete the 2010-2011 drilling campaign. In addition, DRJ-6, a well drilled during the 2009 drilling campaign, was also tested successfully. All three wells have been completed as producers. A 3D seismic survey of 17 sq km was acquired to tie the Sebou and Gaddari surveys and an additional 135 sq km of 3D was acquired over the Lalla Mimouna Nord block, which will form the basis for the next drilling campaign currently scheduled for later in 2012.
Gross gas production during 2011 averaged between 2 and 2.5 MMscf/d. This rate will rise significantly as more wells are tied in during 2012, to between 7 and 8 MMscf/d. The flow rate in March 2012 was between 4 and 4.5 MMscf/d, following the signing of a contract to supply a large ceramics factory in Kenitra. The supply rate to this factory shall increase further and more contracts are expected to be signed shortly with an associated rise in production to 7 MMscf/d gross over the coming months. The pipeline has a total capacity of 23MMscf/d and there is significant scope to utilise this capacity as additional discoveries and offtake agreements are brought on-line.
The Bayphase CPR for our Sebou discoveries resulted in a 2P reserves case of 30 bcf, very close to the 2011 figure compiled by RPS, the authors of the 2011 CPR. Gross gas production from commencement of production in late 2008 through end of December 2011 was 1.93 bcf.