First flows of oil at the Egyptian Al Amir Development pushed stock in U.K.-based Circle Oil up seven percent on Monday, when it was learned 3,000 barrels a day would soon be in production.

With the okay from Egyptian General Petroleum Corp. and its facilities in order, Circle reported test flows of 1,450 bpd from the discovery well Al Amir SE-1X and a first appraisal well.

The Al Amir Development permit covers 36 square kilometres of the NW Gemsa permit, where Vegas Oil and Gas (50 percent) is operator and Circle Oil (40 percent) and Premier Oil (10 percent) are partners.

The new oil was first trucked and then piped to plant at Gazwarina after a seven-kilometre pipeline tie-in.

But Circle also hinted a 22-foot hydrocarbon column might yet lie at Shehab-1, where a first well showed water. Hydrocarbon bearing sandstones were understood to have been detected, to be drilled at a later date.

The find indicated what happens to a small company after a big find: "Today's announcement is a very significant step forward for Circle as we now have become both an oil and a gas producer,” said chief exec David Hough in a statement.

He said it was a new earnings dawn for the company.

Tags: Circle Oil plc, Vegas Oil & Gas