Circle Oil says that the Geyad-2X ST1 appraisal well has been successfully drilled and tested in the onshore North West Gemsa Concession in Egypt.

Circle confirms that the Kareem Formation Sandstones under test flowed 42° API oil at sustained average rates of 3,850 bopd and 4.62 MMscfd of gas using a 48/64" choke from the upper of two identified pay zones. The well, which is the second appraisal well to be drilled on the Geyad discovery area, is being completed and prepared for connection.

Log result interpretations indicate that the total net thickness of the two pay zones is approximately 32 feet. The upper tested pay zone identified in the Kareem Shagar Sandstone is 14 feet thick. The lower untested pay zone in the Kareem Rahmi Sandstone is 18 feet thick and will be further evaluated at a later date.

A full technical evaluation of all the results is underway to permit development planning and is a precursor to further assessment of the resource potential. An assessment of reserves has not yet been completed.

The Geyad-2X well encountered the prognosed Kareem sands at both Shagar and Rahmi levels as well as additional potential hydrocarbon bearing sands in the Upper Rudeis and intersected the prognosed deeper targeted Nubia sands. The deeper Nubia sands proved to be water bearing, the Upper Rudeis sands were tight and the Kareem Sandstones were encountered with high Water Saturation ('Sw') and provided valuable information on the Oil Water Contact ('OWC)' for the reservoir. With the increased knowledge of this contact an updip sidetrack location was planned (Geyad-2X ST1) and successfully drilled to intersect the Kareem Sands.

The NW Gemsa concession, covering an area of over 260 square kilometres, lies about 300 kilometres southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The North West Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil plc (40% interest); and Sea Dragon Energy (10% interest).

Tags: Circle Oil plc