Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce the following update regarding its operations and forthcoming work programmes for 2013 in its operational areas of Morocco, Egypt, Tunisia and Oman.
"Against the backdrop of significant change in the MENA region, Circle has used its experience in the region to consolidate its position and continues to make excellent progress in its core operations. As a result, Circle is now well placed and well funded to accelerate its operations in 2013 and begin unlocking the latent value in its substantial portfolio."
Despite a backdrop of significant change in the MENA region, over the course of 2012 Circle has made further significant progress in its core operations and as a consequence has established a strong platform from which it can develop its significant portfolio in 2013. Illustrating this progress, 2012 was another successful year for Circle with the drilling of seven wells resulting in an 86% success rate.
Since the start of 2011, Circle has undertaken a substantial capital expenditure programme including the construction and commissioning of a 55 km 8-inch pipeline in Morocco, which has been funded through existing cash resources and cash flows from operations. This operational cash flow, together with the continued improvement in the Egyptian receivables position, has enabled Circle to increase its cash position from US$14.38 million at 31 December 2011 to in excess of US$20 million at year-end. This balance sheet strength has been further augmented through the establishment of the $12.5 million working capital facility.
Circle is well established in the MENA region with a successful track record of discovery, development and production. As a result of these achievements, Circle is now well placed to accelerate significantly its operations in 2013 and unlock the latent value in its substantial portfolio. In addition to developing its existing assets, Circle will continue to assess new opportunities to build on its portfolio in its current areas of operations and throughout the MENA region.
Source: Circle Oil Plc
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