CIRCLE OIL PLC confirms a discovery in the Lower Guebbas Formation with the well testing gas at a sustained rate of 8.86MMscfd. The well has been completed as a potential producer. A full technical evaluation of all the results of the well is underway which will allow for forward planning as a precursor to further assessment of the resource, including conducting an extended well test and a more complete estimation of the reserves.

The drilling rig has now moved to the next drilling location on this permit to commence drilling of the KSR-8 well, the third of a planned six well drilling programme in the area.

The Sebou Permit (Circle Oil 75% working interest, ONHYM 25%) lies north-east of Rabat in the Rharb Basin, Morocco. The Rharb Basin is a foredeep Basin located in the external zone of the Rif Folded belt. The concession agreement includes the right of conversion to a production licence of 30 years, plus extensions, in the event of commercial discoveries.