Oil and gas exploration and production company Circle Oil announced that Tunisia has approved its application to renew the exploration permit on the Mahdia block
As operator, Circle Oil currently has 100 per cent working interest in the permit which is being extended for three years and will be valid up to 19 January 2018. The extension of the licence carries with it the commitment for one exploration well and one appraisal well, as well as the requirement to acquire 300 sqkm of 3D seismic data.
The Mahdia permit offshore Tunisia covers an area of 3,024 sqkm, and contains the El Mediouni structure which was drilled by Circle Oil’s EMD-1 well in August 2014. At the time, the company had announced that the well had encountered notable oil shows in the Ketatna (Oligo-Miocene) carbonates. Mud losses had prevented log data acquisition but Circle Oil considers the shows to indicate a significant resource from the structure.
Mitch Flegg, CEO of Circle Oil, thanked the Tunisian Consultative Committee on Hydrocarbons and said, “We look forward to continuing to work with them with the aim of delivering a project which would bring considerable benefit to the people of Tunisia and to Circle. We will now move forward with the process of identifying a suitable partner or partners to work with us to realise the value of this exciting discovery.”
The company has said that it had already received 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.