Circle Oil has reported preliminary final results for 2013. Operating profit was in line with the company’s estimate of US$ 32.4 million, net production for the year was 64,000 boepd, and cash at year-end was US$ 26.2 million.
In other news, Circle Oil has started the third drilling campaign in Morocco and has spudded the EMD-1 well on the Mahdia permit offshore Tunisia, which is targeting almost 50 million barrels of oil equivalent.
Chairman of Circle Oil noted that the company is making good progress on a potential farm out of its highly prospective acreage offshore Oman - this could be transformational for Circle.
Circle Oil has an interesting portfolio of North African focused assets with significant upside optionality. It does need to accelerate execution of its business plan (which the Chairman has acknowledged) however Westhouse considers Circle Oil to be an interesting potential takeover candidate in a region that is dominated by multiple sub-scale players.
The remainder of 2014 will be busy for Circle Oil with ongoing drilling in Morocco, potentially transformational exploration wells in Tunisia and the prospect of a farm-out announcement in Oman. The company will host an analyst presentation on 25 June, at which they will provide more detail on the opportunities within the portfolio.
Adapted from press release by Katie Woodward
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