Circle Oil takes Pelagian farmout off Tunisia

June 19, 2008
Circle Oil PLC took a farmout from Tethys Oil & Mining Ltd. on the 3,780 sq km Mahdia permit in the Mediterranean Sea 55 miles east of the mid-Tunisian coast.

By OGJ editors
HOUSTON, June 19 -- Circle Oil PLC took a farmout from Tethys Oil & Mining Ltd. on the 3,780 sq km Mahdia permit in the Mediterranean Sea 55 miles east of the mid-Tunisian coast.

Circle will become operator once it has shot 500 line-km of 2D seismic, required by July 2009, before any drilling commitment. One well is required in the following 3 years. Circle plans to earn a 70% working interest in the permit.

Circle management is familiar with the permit's geology, and many of the main undrilled prospects are already mapped. The prospects are undrilled due to their size and historic lower oil prices and are now quite commercial, Circle Oil said.

The permit is bounded to the north by the Nabeul Permit and to the east by the territorial boundary of Lampedusa island off Italy. Previous commercial discoveries in this area of the Pelagian basin include Tazerka, Birsa, Oudna, Halk El Menzel, and Isis.

Circle Oil also holds the Ras Mamour Permit in southern Tunisia and the Grombalia Permit in northern Tunisia.