Oil price stalls Mahdia farm-out offshore Tunisia

Offshore staff

DUBLIN, IrelandCircle Oil has issued an update on its offshore operations in the Middle East and North Africa.

The company has completed relinquishment of block 52 offshore Oman after failing to attract farm-in partners to avoid well cost commitments at 100% exposure.

However, the government agreed to a withdrawal without penalties in recognition of Circle’s expenditures to date. 

At Tunisia’s offshore Mahdia block, Circle completed analysis of the 2014 El Mediouni-1 well which encountered light oil shows through a 133-m (436-ft) section of Ketatna (Oligo-Miocene) carbonates.

The company has secured an extension of the permit through January 2018, with a work commitment of one exploration and one appraisal well and 300 sq km (116 sq mi) of 3D seismic (or equivalent in 2D line km).

Circle has performed further technical work which suggests that development of the Mahdia prospect would be economically feasible at existing oil prices.

The company initiated a farm-out process on the block late last year 2015, but the response was subdued due to the low oil price.

06/29/2016

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