Rabat - Irish company Circle Oil announced on Monday that it will abandon the NFA-1 well located on the Lalla Mimouna permit onshore Morocco.
Rabat – Irish company Circle Oil announced on Monday that it will abandon the NFA-1 well located on the Lalla Mimouna permit onshore Morocco.
The Limerick-based company said it encountered gas shows whilst drilling at the targeted depth but the reservoir quality encountered in the well was not as high as previous estimates. As a result, the well will now be plugged and abandoned.
NFA-1 was the third well drilled by Circle Oil on the Lalla Mimouna permit onshore.
Circle Oil’s shares were trading lower on Monday following the news that the company is abandoning the NFA-1 well onshore Morocco. Shares in the company were down 6.5% in early trade.
The rig used to drill NFA-1 will now be mobilized to drill the Ksiri South (KSS-A) exploration well in the Sebou permit in the Rharb Basin.
Circle Oil’s Chief executive Mitch Flegg, said: “As planned we will now return to the Sebou permit to continue our drilling operations there while we interpret the valuable data gained from the first three Lalla Mimouna wells.”
The Sebou permit is a partnership between Circle Oil Maroc Limited (75%) and ONHYM (Office National des Hydrocarbures et des Mines) (25%).
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