Circle Oil revealed that it had discovered new onshore gas detection with the CGD-12. It was stated that the well encountered 9.7 meters of net pay.
The two target tanks are the major Hoot reservoir which had gas running at a rate of 4.62 million cubic feet each day, and the secondary Intra Hoot reservoir which had 2.21 million cubic feet each day. It was also reported that the well drilling will now be fulfilled to let for upcoming production.
Circle Oil was very satisfied to have attained another thriving discovery on the Sebou Permit with added reserves for possible gas production. It was noted that this was the second of six well programs to be drilled in relation with ONHYM which is connected to another six well drilling program on the Lalla Mimouna permit. Circle will now drill the KSR-12 well on the third on the Sebou permit.
Even though the detections by Circle were small, to this point they had low well expenses due to Morocco’s positive fiscal strategies and the local demand for gas.
Circle Oil inked a loan contract of $100 million prior this year to finance new detections in Egypt and Morocco.