The Libyan state has secured a stake in U.K.-based North Africa explorer Circle Oil, which on Friday announced it has raised £33 million ($66 million) in a fresh stock placement.

Libyan sovereign wealth fund Libya Oil Holdings Ltd. has secured a 29.7-percent stake in Circle for £20 million ($40 million), fulfilling a promise made last year to start investing $100 million from unexpected oil revenues in foreign stocks. Circle and the Libyans have already agreed to pursue joint projects.

Oil Holdings is held by Libya Africa Investment Portfolio, though an affiliate of Libya’s National Oil Corp, is tasked by the country’s leadership with investing outside Libya. Libya-Africa Investment wields $5 billion in investment capital.

Libya, with Africa’s largest oil reserves, has reopened its data rooms to foreign oil companies after a Cold War prolonged by tragedies in and outside the desert Republic.

Circle, meanwhile, will use the new funds to pay three rigs to drill up to 15 exploration wells by year-end 2009 in Morocco, Tunisia and Egypt.

Company chief exec David Hough suggested the Libyans were a fortunate find “in what remains a very tough financial market”.

The company’s first production revenue is due this month.

Tags: Circle Oil plc