Oil & Gas Corporate News
Circle Oil (LON:COP) (BUY, £0.90) (COP, 34.75p, ? (0.0%)) announced a gas discovery in the Sebou Permit, Rharb Basin, Morocco. The KSR-10 exploration well encountered gas in both the Main Hoot and a secondary Mid Hoot targets with gas flows tested at sustained rates of 10.6 mmscf/d (on a 26/64" choke) and 2.39 mmscf/d (on a 16/64" choke) respectively. Additional gas pay zones of 4.4 metres, 3.1 metres and 1.4 metres in the Lower, Middle and Upper Guebbas were also logged. Testing of the Lower Guebbas encountered problems and was inconclusive. This Lower Guebbas zone together with the additional pay zones in the Middle and Upper Guebbas will be tested at a later date. The well is being completed as a potential producer. A full technical evaluation of all the results of the well is underway. This will allow for forward planning as a precursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves. The drilling rig is now moving to commence drilling ADD-1, being the fourth well of the planned five well drilling program in the area. Following this, the KSR-11 well will be drilled and the DRJ-6 well from the previous drilling campaign will be tested. Weather permitting, the KAB-1 well, drilled in September 2010, will be re-entered for logging or re-drilled. The Sebou permit lies to the north-east of Rabat in the Rharb Basin in Morocco. The Rharb Basin is a foredeep basin located in the external zone of the Rif Folded belt. The concession agreement, in which Circle has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production licence of 25 years, plus extensions in the event of commercial discoveries.
Desire Petroleum (LON:DES) (BUY, £1.50) (DES, 47.75p, ? (8.72%)) announced that the 25/5-1 well on the Dawn/Jacinta prospect has reached a total depth of 1,697 metres in pre-rift sediments and that based on preliminary drilling and wireline logging data there are no significant hydrocarbons in the Dawn prospect and the well will be plugged and abandoned. Wireline logging and abandonment operations will now be completed and the rig will then go to Rockhopper Exploration to drill 1…
