21 August 2009

Circle raises GBP16.5 million in a Secondary Placing

 

Circle Oil Plc (AIM: COP) has today conditionally placed 61,152,776 new ordinary

shares of EUR0.01 each par value (the "Placing Shares") at a price of 27 pence per

share raising GBP16.5 million for the Company from a number of institutional

investors (the "Placing") through Fox-Davies Capital. It is expected that the

Placing Shares will be admitted to trading on AIM on 27 August 2009.

The proceeds of the Placing will be used by the Company to assist in increasing

gas production in Morocco through the provision of new infrastructure and

additional drilling in 2009/2010, contribute to increasing production in Egypt

through further appraisal and development drilling, complete more geology and

geophysics over its Tunisian land permits and for general working capital

purposes.

 

Mr David Hough, CEO of Circle, said:

We are delighted to have completed this Placing and appreciate the support of

all the investors who have contributed. This Placing was not just about raising

money for future development but also about broadening Circle's institutional

shareholder base, which the Board considers to be of importance to a Company

with our growth potential.

"The Placing proceeds will be used to build on this year's highly successful

exploration programme, converting more of the Company's confirmed discoveries

into production revenue. The proceeds will also enable us to fund further

exploration and appraisal/development programmes planned over the next 18

months.

"Circle is well positioned to build on the recent positive drill results and I

look forward to providing shareholders with news of continued good progress."

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