Circle Oil successfully drills and tests formation at North West Gemsa oil and gas conecssion in Egypt

Circle Oil (AIM: COP) said that the Geyad-2X ST1 appraisal well has been successfully drilled and tested in the onshore North West Gemsa Concession in Egypt, flowing oil at sustained average rates of 3,850 bopd (barrels of oil per day) and gas at 4.62 mmscfd (million standard square feet per day).

The Geyad-2X well encountered the prognosed Kareem sands at both Shagar and Rahmi levels along with additional potential hydrocarbon bearing sands in the Upper Rudeis and intersected the prognosed deeper targeted Nubia sands. The well, which is the second to be drilled on the Geyad discovery area, is being completed and prepared for connection.

Log results indicated that the total thickness of the two pay zones was 32 ft (feet), with the upper tested zone and lower untested zone, which is to be evaluated at a later date, being 14 ft and 18 ft thick respectively.

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.

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).

The drilling rig will now move to commence drilling the Al-Amir SE-5 well which is the fourth appraisal well in the Al-Amir SE discovery area, targeting the Kareem formation.

The company also said that its daily production increased to 7,350 bopd following a change to production choke on Al-Amir SE-4, expecting a further increase in production once Geyad-2X ST1 is connected and attains stabilised production.

“This successful appraisal well once connected will add to our current production levels in the Gemsa Concession and must be regarded as more excellent news for Circle Oil. The information gained on the OWC is also fundamentally important and this obviously aided in planning the optimum sidetrack location. This well has achieved higher flow rates under test than the first Geyad well and we can again be justifiably pleased with the results of our ongoing drilling programme,” said chief executive of Circle Oil David Hough.  http://www.proactiveinvestors.co.uk/companies/news/12425/circle-oil-successfully-drills-and-tests-formation-at-north-west-gemsa-oil-and-gas-conecssion-in-egypt-12425.html