Circle Oil plc (AIM:COP), the international oil and gas exploration and development company, is pleased to announce, in partnership with Exxoil Tunisie Ltd, the commencement of drilling operations on the Zita Prospect in the Ras Marmour Permit, southern Tunisia.

Drilling operations commenced on the 20th August 2007 and are anticipated to continue for the next two months.

The well is targeting the two main reservoir types in the area which include the fractured dolomites of the Cenomanian Zebbag formation, which form the main reservoir of the nearby Ezzaouia oilfield and the Upper Jurassic sands levels of the M'rabtine formation which are also productive in the Ezzaouia field.

Further announcements will be made in due course.