Circle Oil, a Limerick based Oil Exploration Company confirmed it has struck oil in Tunisia. It is estimated that the new well could contain as much as 100 million barrels of recoverable oil.
Circle Oil, a Limerick based Oil Exploration Company confirmed it has struck oil in Tunisia. Circle Oil, currently involved in oil exploration off the coast of Tunisia has made a significant oil discovery at their exploratory well, named El Meiouni-1. EI Meiouni-1 is located in the Mahdia Permit approximately 120 kilometres from the eastern port of Sousse in Tunisia. This well could contain as much as 100 million barrels of recoverable oil.
Focused on oil and gas exploration in the Middle East, with offices in the UK, Tunisia, Oman, Morocco and Egypt, this oil find will undoubtedly be a significant step forward for the company. Having secured a six month extension to work in this area, all eyes will be on Circle Oil and their rising share price on the London Stock Exchange.
Despite the inevitable extraction costs or time scale for getting the oil to market, the report has added €36 million to the overall valuation of the company. Based on a Brent Crude price of $102 per barrel, this would equate to a discovery of around €10.2 billion, or €7.7 billion. As a result the share price now stands at 22.88 pence (27/8/14)