Irish company strikes gas in Morocco - breaking news.

The Irish Times is reporting that Circle Oil the oil and gas exploration and development company with assets in North Africa and the Middle East, has drilled, logged and successfully tested a gas find in the Ouled N’Zala Permit in Morocco. The Ouled N’Zala Permit is situated north-east of Rabat in the Rharb Basin.

According to another source, Circle Oil confirmed a discovery in the ‘Upper Ouled Formation’, with the well testing gas at a sustained rate of 3.32 MMscfd. The well has been completed as a potential producer, and the drilling rig has now moved to the Sebou permit to commence drilling the second of the six well programme across the Company’s two permits. The concession agreement includes the right of conversion to a production licence of 30 years, plus extensions, in the event of commercial discoveries.

David Hough, CEO of Circle, said the results was excellent news for the Company: "This discovery in our first well in Morocco is excellent news for Circle. The well has been completed in readiness for an extended production test and the field test results are in line with our expectations for this area. We look forward to the results of the next well which will be the first in the Sebou Permit where Circle holds a 75% interest.’’

Tags: Moroccan Morocco Fes, Maghreb news