Circle Oil tests Ouled N'Zala gas well in Morocco

Circle Oil PLC has tested 3.32 MMscfd of natural gas from an exploration well on the Ouled N'Zala permit in Morocco.

Uchenna Izundu
International Editor

LONDON, Nov. 11 -- Circle Oil PLC has tested 3.32 MMscfd of natural gas from an exploration well on the Ouled N'Zala permit in Morocco.

Exploration well ONZ6, which is the first successful well for the company in the country, struck gas in the Upper Ouled formation. It will now undergo an extended production test.

Circle Oil is evaluating the results to determine the size of the resource, including carrying out an extended well test. It has not completed a full assessment of the reserves.

"The field test results are in line with our expectations for this area," said Circle Oil Chief Executive David Hough. "We look forward to the results of the next well, which will be the first in the Sebou permit where Circle holds a 75% interest."

Circle Oil will now drill on the Sebou permit, which is the second of the six-well drilling program.

The Ouled N'Zala permit lies northeast of Rabat in the Rharb basin in Morocco. The Rharb basin is a foredeep basin in the external zone of the Rif folded belt.

Circle Oil can convert the concession agreement to a production license of 30 years, plus extensions, if it has commercial discoveries.

Contact Uchenna Izundu at uchennai@pennwell.com.

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