Circle Oil has announced that its exploration permit offshore Mahdia Block has been approved by Tunisian authorities
The permit is being extended for three years until 19 January 2018 and Circle Oil, as operator, currently has a 100 per cent working interest in the block.
Circle Oil has further said that it has already had initial expressions of interest from a number of oil and gas companies with the financial strength and industry experience to make them suitable joint venture partners. The farmout strategy will minimise Circle Oil’s financial commitment, reduce risk, and still allow the company to benefit from the potential of the discovery, according to the company.
The Mahdia permit offshore Tunisia covers an area of 3,024 sq km and contains the El Mediouni structure, which was drilled by Circle Oil’s EMD-1 well in August 2014.
The well had encountered notable oil shows in the Ketatna (Oligo-Miocene) carbonates.
Mitch Flegg, CEO of Circle Oil, said, “We look forward to continuing to work with Tunisian Consultative Committee on Hydrocarbons with the aim of delivering a project which would bring considerable benefit to the people of Tunisia and to Circle Oil.”
The extension of the licence carries with it a one exploration well and one appraisal well commitment and a requirement to acquire 300 sq km of 3D seismic.
