Circle Oil finds gas in Morocco well

Reuters, Tuesday 4 Jan 2011

The explorer, which has assets in Egypt, says the well is the second discovery in three months. The discovery has sent its shares up 3.6%

Oil and gas explorer Circle Oil said it made a second gas discovery in three months at its key Sebou Permit in Morocco, sending its shares up 3.6 percent.

In October, Circle Oil said it found gas in well CGD-11 in the same field.

The company, which started drilling in the Sebou Permit in September, said it found gas in the deeper regions of the KSR-10 well.

The explorer, who has assets in Morocco, Namibia, Oman, Egypt and Tunisia, also said it would now start drilling the fourth well of the planned five-well drilling programme at the field.

Circle Oil shares, which have gained about 17 per cent over the last 12 months, were up 3.6 percent at 0817 GMT on Tuesday on the London Stock Exchange.

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