Marrakech- The Irish based Circle Oil announced that it had found a new onshore gas discovery with the CGD-12 well according to its website. It said that the well encountered 9.7 meters of net pay.
The two target reservoirs are the main Hoot reservoir which had gas flowing at a rate of 4.62 million cubic feet per day, and the secondary Intra Hoot reservoir which had 2.21 million cubic feet per day. Circle said the well drilling will now be completed to allow for future production.
The chief executive of Circle Oil, Chris Green, said he was “very pleased” to have achieved another successful discovery on the Sebou Permit with “additional reserves for potential gas production.” He noted that this was the second of six well programs to be drilled in connection with ONHYM which is linked to another six well drilling program on the Lalla Mimouna permit. Circle will now drill the KSR-12 well on the third on the Sebou permit.
In a note to investors, the company Investec, quoted by the Irish Times said that although the discoveries by Circle were small, so far they had low well costs due to Morocco’s favorable fiscal policies and the local demand for gas.
The Irish Times notes that Circle Oil signed a loan agreement of $100 million earlier this year to fund new discoveries in Egypt and Morocco. The loan becomes repayable in June 2018.
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