Petroleum Africa
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Wednesday, November 12, 2014
Circle Oil’s drilling of the KSR-12 well on the Sebou Permit in Morocco is continuing. The company’s primary target is in the Mid Hoot interval and a secondary target in the Upper Guebbas. The present planned TD of the well is 1,980 meters MD.
Upon completion of KSR-12, the present drilling rig will be demobilized and returned to work with another operator.
Drilling will recommence on the next well in the campaign with another rig which presently is being mobilized. This rig is the subject of a long term contract to provide continuous cover and continuity for drilling the remaining nine wells in the exploration program for the Sebou and Lalla Mimouna permits. It will also be used for any required workovers and testing programs. With the possible onset of late autumnal and early winter rains the next wells will be drilled on higher ground in the Lalla Mimouna permit before returning to the Sebou permit.
Regarding Egypt, Circle said that the NW Gemsa and Geyad permits’ production continued in line with predicted production profiles. The company said that oil production varies between 9,300 and 9,700 bpd and gas delivery at 10-11 Mmscf/d. Variations in production continue to be a function of individual well performance and the effectiveness of the ongoing workover programs.
The dynamic reservoir model is now in operation to monitor and model future fluid and gas movements and budgets are being finalized for 2015 in line with company expectations.
On money owed to it by EGPC, Circle said that its receivables levels continue to be in line with previous guidance and regular payments continue to be received. It is presently expecting an additional one-off payment from the recently announced special tranche allocated to reduce overall oil company debt in the country.
In Tunisia following completion of the Mahdia well, reinterpretation of the 3D integrating the well results has been ongoing to produce final data to permit the commencement of a farm out for future appraisal of the Mahdia Block. Circle has already received expressions of interest from a number of companies to participate in a farm out process. This will be actively pursued in the coming months. The company is in discussion with the Tunisian authorities regarding the renewal of the permit for a further three years.
Circle has also finalized arrangements with the contractors for the Mahdia well and is now in a position to update the market on costs. As a result of various delays and technical challenges, the cost of the well is at the top end of the board’s expectations. However, as a result of its existing financial resources and operational cashflow, this additional cost will not impact on the its operational plans going forward.
It is also awaiting further news from the operator regarding the well to be drilled in the Ras Marmour Permit.
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