Circle Oil Plc says that the Tunisian Authority has approved the application to renew the exploration permit on its Mahdia block the. The Permit is being extended for three years until 19 January 2018 and Circle Oil, as operator, currently has a 100% working interest in the Permit.
The Mahdia permit offshore Tunisia covers an area of 3,024km2, and contains the El Mediouni structure which was drilled by Circle's EMD-1 well in August 2014. As announced on 26 August 2014, the well encountered notable oil shows in the Ketatna (Oligo-Miocene) carbonates. While mud losses prevented log data acquisition, Circle considers the shows to indicate a significant resource from the structure. The Permit also contains a number of similar prospects which the Company look forward to exploring in further detail.
The extension of the licence carries with it a one exploration well and one appraisal well commitment and a requirement to acquire 300km2 of 3D seismic.