LONDON (Thomson Financial) - Circle Oil Plc. said it has signed a farm-in agreement for the Mahdia Permit offshore Tunisia with Tethys Oil and Mining Ltd.
Following the farm-in, the oil and gas exploration and development company will hold a 70 percent working interest in the permit.
Circle will become operator once the acquisition of 500 km of additional 2D marine seismic is complete, prior to the start of any drilling in the permit.
The permit commitments require the acquisition of 500 km of 2D seismic in the first two years of the licence, which started in July 2007, and the drilling of one commitment well in the subsequent three years to 2012, Circle said in a statement.
'These prospects remained undrilled due to their size and historic lower oil prices, but they are now very commercial,' said CEO David Hough. 'With good potential reserves they are now definitely worth pursuing.'
Via [Hemscott]
