Since I mentioned COP in relation to Marben's posts on NOP, I thought I had better get something down on the boards if only for information. Hopefully some will find it of interest and worth a second look or comments can be made as to its merits.

Circle Oil is one of the least promotional companies I can recall having come across. They are rarely discussed on Bullboards and have limited coverage by other brokers and yet they are, Ifeel, quite interesting at the moment.

One thing is certain and that is that the website: is pretty woeful compared to what other companies provide. I know that when I was looking it took me a long time to actually spot that they are in compliance with AIM Rule 26 (that section is hidden away in very small type at the top right hand corner of the webpage.

Anyway, some basics,

Circle listed on AIM back in 2004 and has spent the time since building a portfolio with a focus on N Africa and the Middle East. Originally the portfolio and focus was on "frontier" or high impact licences with acreage acquired in Oman and Namibia particularly prominent. In 2006 the focus shifted towards development work and getting production on board. To that end Egypt and Morocco have seen the most "action", together with Tunisia. 

Last year the company conducted a placing (Sept) raising £33m mainly with two sharehodlers, Kaupthing (who now have 15%) and more interestingly, Libya Oil Holdings who have 29% of the shares. As part of the deal, LOH and Circle are looking to find projects on which that can work together.

This raising gave COP enough cash to cover their work planned for a 15 well programme running to the end of this year.

Due to drilling success, COP is likely to be producing over 5000 boepd by the end of the year and probably over 7000 bopd mid 2010. That, coupled with a strong balance sheet puts the company in a very interesting position to push further ahead with adding reserves.

Drilling Activity

Since the placing last year, these are the wells that have been drilled and their results:

  1. 3/10/08 Al Amir SE1 Well in NW Gemsa Egypt - tested 41 degree API oil and gas. Flowed at 3.4k bopd and 4.25mmcfd 
  2. 10/11/08 ONZ6 in Ouled NZala Sebou Morocco - tested…

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