Circle Commences Morocco Drilling Program

The drilling rig has now commenced drilling at the first wellsite in the Sebou Permit. The first well, designated KAB-1, is planned to drill to a Miocene Guebbas Sand target with the well expected to TD at 1,360 meters. The drilling of this and each subsequent well in this campaign is presently expected to take approximately five to six weeks per well. All wells are targeting Miocene aged gas sand targets varying in depth from 900 to 1,700 meters.

As part of this campaign the DRJ-6 well, drilled in 2009, is scheduled to be re-entered and tested. As previously announced, a local transport strike prevented its testing during that drilling campaign.

Pre-planning for the 62 km extension to the gas trunk line is well advanced and the order for materials for the new 8-inch pipeline, which will have a production capacity of 23 MMscfd, has been placed.

Total gas production from our Morocco wells from start up in November 2008 to end August 2010 is 923 MMscf (26.13 MMNm3). Gross daily production is ranging between 1.4 to 2.2 MMscfd (40,110 to 62,643 MNm3), and is contracted to supply local industry demands.

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