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Circle Provides Operational Update on Grombalia Permit

Source: www.gulfoilandgas.com 12/28/2012, Location: Africa

Circle Oil Plc, the international oil and gas exploration, development and production company, is pleased to announce the following update regarding operations in its Grombalia Permit.

The Bou Argoub-1 (BAB-1) exploration well in the South West Belli area of the Grombalia Permit, near to the Belli, El Manzah, and Beni Khaled fields commenced drilling on 30 October 2012. The target for the well was a fault-bounded structural culmination crossing two vertically stacked fractured carbonate reservoirs, the Eocene Bou Dabbous Formation and the Late Cretaceous Abiod Formation. These are the main oil-producing formations in the northeastern part of Tunisia. BAB-1 reached a total depth of 1,520 metres in the Abiod formation and was completed on budget.

The expected Bou Dabbous reservoir rock was encountered from 1,109.5 to 1,199.5 metres MD with gas and oil shows detected in the finely crystalline limestones with calcite filled micro fractures. The second target formation the Abiod was encountered from 1,432.5 to 1,520 metres MD, consisting of hard crystalline limestones with weak oil and gas shows. The indications of hydrocarbons in the Bou Dabbous Formation were encouraging, though following the receipt of full log analysis results from the service company the limestones at this location were shown to have insufficient reservoir quality and hydrocarbon saturation to produce hydrocarbons at commercial rates.

The well will now be plugged and the results integrated with existing seismic and well information to improve evaluation for future work on the Grombalia block.

Following completion of BAB-1, the rig will be moved south to the Ras Marmour Permit in preparation to drill the Sedouikech commitment exploration well. This well has an expected total depth of 2,350 metres and is targeting the Early Cretaceous Lower Meloussi sands, productive in the nearby Robanna and Mazrane Fields.

Prof Chris Green, CEO of Circle, said:
"We have encountered a good thickness of reservoir rock showing the presence of hydrocarbons in the Bou Dabbous formation. This is a proven hydrocarbon producing area with both current and historic production in production licences within and around the concession. Reservoir quality and hydrocarbon saturation is known to vary across the acreage. As a result, the upside prospectivity of future targets remains."

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