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Circle Oil Provide Update on NW Gemsa Concession

Source: www.gulfoilandgas.com 12/10/2009, Location: Africa

Circle Oil Plc., the international oil and gas exploration, development and Production Company, is pleased to provide the following update in Egypt.

After the initial month of production from the recently connected Al-Amir SE-4X well, the total average gross daily production from the existing wells in Al-Amir and Geyad areas has reached 6070 bopd. The Al-Amir SE-4X well is producing at approximately 2200 bopd from the lower of two possible pay zones located in the Kareem Rahmi Sandstone. With five wells, Al-Amir SE-1, 2, 3 and 4 and Geyad-1, now in production, the total oil produced from both areas since production began in late February is over 940,000 barrels.

The Mubarrak-10 rig is continuing with the drilling of the Geyad-2 well which is the first appraisal well in the Geyad discovery area. The primary target is the Kareem Formation and it is also planned to drill a secondary target in the Pre-Miocene Nubia sandstones which are now prognosed at a depth of 11,500-12,500 feet, which is slightly deeper than initially anticipated. The results of this appraisal well will be issued in due course.

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