Circle Oil's chief executive Prof Chris Green is to step down from the board and resign from the company, the Limerick-based company has confirmed.
Prof Green, who has led the company for the past eight years, is to remain in the role until a successor is appointed.
The oil and gas exploration firm, which concentrates on the Middle East and Africa, also issued an operating update which reveals that production at its permits in Morocco and Egypt is continues to run in line with expectations.
Circle said drilling continues on the KSR-12 exploration well in the Sebou Permit in Morocco. Drilling will recommence on the next well in the campaign with a different rig which is currently being mobilised. Production levels at the permit continue to run in line with company expectations at 7MMscf/d, the group said.
Circle said production in the NW Gemsa and Geyad permits in Egypt continues in line with predicted production profiles with oil production varying between 9,300 and 9,700 barrels of oil per day (bopd) and gas delivery at 10-11 MMscf/d. The dynamic reservoir model is now in operation to monitor and model future fluid and gas movements and budgets are being finalised for 2015.
Following completion of the Mahdia well in Tunisia, reinterpretation of the 3D integrating the well results has been ongoing to produce final data to permit the commencement of a farm-out for future appraisal of the Mahdia Block, Circle said. The company said has received expressions of interest from a number of companies to participate in a farm out process, which it intends to pursue in the coming months. Circle said it is in discussion with the Tunisian authorities regarding the renewal of the permit for a further three years.
The company said it has finalised arrangements with the contractors for the Mahdia well. As a result of various delays and technical challenges, the cost of the well is at the top end of the board’s expectations. However, as a result of its existing financial resources and operational cashflow, this additional cost will not impact on the company’s operational plans.
In Oman, the group is engaged in preparations to commence drilling the Block 49 commitment well. Access roads over 20 kilometres in length have been constructed to the main road and the drilling rig base and mud pits have also been completed. The drilling rig has been identified and contracts are being finalised. The Shisr-1 well will target the main prospect at 1,883 metres MD and a secondary target at 2,669 metres MD with a TD of 2,768 metres MD. The company internal estimate of most likely recoverable resources is 14 MMBO.
Circle said discussions continue regarding the possibility of a farm-out in the offshore Block 52 and the results of the 2014 2D seismic survey have been incorporated into the database. The results have confirmed the presence of the shallow water prospects and added a fourth prospect to this portfolio.
