FROM SCRATCH NEWSWIRE

SCAVENGING THE INTERNET

FIRST GAS DISCOVERY IN MOROCCO

Posted by Gilmour Poincaree on December 13, 2008

11-10-2008

PUBLISHED BY ‘THE NORTH AFRICA JOURNAL’ (Boston, MA, USA)

UK-based independent hydrocarbons exploration firm Circle Oil Plc confirms that it has found natural Britain’s Isle of Grain Liquefied Natural Gas terminal has received its first gas shipment after a substantial upgrade programme designed to increase handling capacity to 8.6 Bcm per year - 26-11-2008gas in the north-east of the Moroccan capital Rabat. The finding is important in that Morocco has long been hoping to find hydrocarbons and past discoveries turned into failed ventures and bad PR disasters.

This time, the news is more solid. Circle says the gas was found on well ONZ6 in the Ouled N’Zala Permit. The Company confirms a discovery in the Upper Ouled Formation with the well testing gas at a sustained rate of 3.32 MMscfd. The well has been completed as a potential producer and the drilling rig has now moved to the Sebou permit to start drilling the second location of the six well drilling program planned for the two permits.

A full technical evaluation of all the results is underway which will allow for forward planning as a precursor to further assessment of the resource including conducting an extended well test. A full assessment of reserves has not yet been completed.

The Ouled N’Zala Permit lies north-east of Rabat in the Rharb Basin, Morocco. The Rharb Basin is a foredeep Basin located in the external zone of the Rif Folded belt. The concession agreement includes the right of conversion to a production license of 30 years, plus extensions, in the event of commercial discoveries. Circle holds a 75% interest in the Sebou permit.

The work in Morocco is being undertaken by Circle Oil Maroc Ltd (COML), a wholly owned subsidiary of Circle Oil plc, which was signed an Exploration and Exploitation Agreement with ONHYM (Office National des Hydrocarbures et des Mines) for the Sebou Concession (296 km2), situated in the Rharb Basin, Morocco. The Exploration Agreement is for a total period of 8 years with the right of automatic conversion to a minimum (but extendable) 25 year Exploitation period.

The Sebou Permit has previously been owned, explored and exploited by ONHYM. In the partnership the shareholding is COML 75% and ONHYM 25%. The Rharb Basin is highly prospective and has a historic natural gas production of almost one billion MM3. 2D seismic and well calibration is available and ONHYM have extensive knowledge of the area. Small scale Gas production within the Rharb is presently from four wells.

The permit has considerable potential for the exploration and development of more natural gas and exploitation would be by a series of low cost wells/producers each producing from 20-80MM3 of gas. The produced gas will be sold to local industry at locally agreed commercial rates. If successful, the development will allow COML to achieve production in a relatively short time scale and provide a long term continuing earnings contribution to COML.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE NORTH AFRICA JOURNAL’ (Boston, MA, USA)

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