Circle Oil Plc (AIM: COP), the Middle East and North Africa focused oil and gas exploration, development and production company, provides the following information on the Company's activities in Oman.
Oman Block 49 -Exploration Well Shisr-1
Further to the Financial and Operating update published on 12 February 2015, in which the Company announced the start-up for drilling of the well Shisr-1 in Block 49, onshore Southern Oman, a decision has now been taken to plug and abandon the well (which reached a measured depth of 1,650 metres) due to drilling difficulties, which have not been encountered to the same extent in previous wells in the area, no hydrocarbons were found. The primary target had been the Hasirah sands prognosed at a depth of 1,890 metres.
The Bottom Hole Assembly ("BHA") became stuck below the 9⅝ inch casing shoe which had been set at 819 metres. Multiple attempts were made to remove the BHA but these proved unsuccessful. Drilling information, confirmed by the Company's independent drilling advisor, suggests that the main problem zone is immediately below the casing shoe and further attempts to deepen or sidetrack this borehole are inadvisable.
The Ministry of Oil and Gas in Oman have given their approval to plug and abandon the well. As has been stated previously, management viewed this well as a high risk commitment well with a low probability of success.
Chairman Steve Jenkins commented,
"This well was always deemed as high risk and the unexpected and disappointing conditions experienced in this well, designed as a slim-hole stratigraphic test, have been a challenge to our drilling team."
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