Circle Oil Signs Drilling Contract in Tunisia For Two Onshore Wells

Circle Oil 06-22-2007

Circle Oil plc had entered into a farm-in agreement with EXXOIL S.A. on two of EXXOIL’s licences in Tunisia. A contract has been signed between EXXOIL, the operator of the exploration programme, and Oil Field Services Company for the drilling of two onshore wells.

The first well is scheduled to spud in July/August on the Zita prospect (Ras Mamour Permit) with spudding of the Serdouk prospect (Grombalia Pemit) planned for before the year end. Oil Field Services will use its Franks Cabot 900 rig to carry out the drilling.

Commenting on this news David Hough, CEO of Circle Oil, said:
“The signing of this contract is an important step forward for Circle as both these Tunisian prospects have the potential to provide Circle with early production and cash flow. The start up of this contract will mark the beginning of Circle’s aggressive 2 year drilling programme whereby at least 9 wells will be drilled on its licences in Tunisia and Morocco.”