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Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following update regarding the commissioning of the new pipeline and associated infrastructure for its Rharb Basin permits in Morocco. The pipeline has been successfully pressure tested, certified and commissioned. Test supplies commenced on 1 February 2012 and gas has been supplied to local industry since that date.
The total delivery through the new pipeline is currently approximately 36,000 Nm3/d (1.27 MMscf/d). This is scheduled to rise to approximately 90,000 Nm3/d (3.18 MMscf/d) by the start of March. Total deliveries through the old and new pipeline will then be approximately 150,000 Nm3/d (5.30 MMscf/d) with net revenues to Circle, on an annualised basis, increasing to approximately US$14 million per annum on this initial increase in gas supply levels. Further increases in production are expected through the year with fourth quarter production anticipated to be in the order of 230,000-240,000 Nm3/d (8.13 - 8.48 MMscf/d).
Circle, through its wholly owned subsidiary, Circle Oil Maroc Ltd. holds a 75% interest in the Sebou and Lalla Mimouna Permit Concessions with the remaining 25% held by ONHYM. In addition, it holds a 60% interest in the Oulad N'zala Permit Concession with the remaining 40% held by ONHYM. Circle has a 75% interest in the new 8-inch pipeline with the remaining 25% held by ONHYM.
Prof Chris Green, CEO, said: "I am delighted to be able to report the successful start of commercial gas deliveries from our new pipeline in the Rharb. Circle and its partner have now begun to significantly increase gas supplies and associated revenues as the next step in further exploiting our Rharb acreage".
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