Business Irish

Saturday 21 October 2017

Circle raises €65m in share placing

Thomas Molloy

Thomas Molloy

CIRCLE Oil, a Limerick-based explorer interested in the Middle East, said it raised €65m yesterday from investors after a share sale.

Circle said it planned to spend $16m (€12.1m) in Morocco to fund the company's 3D seismic programme on land close to a successful find and accelerate drilling; $11m in Tunisia to boost the work programme on existing permits; $6m in Egypt to commission a new gas well; $26m in Oman to speed up drilling and $6m on new ventures in the Middle East and North Africa.

"I believe this marks the beginning of a new period of growth for Circle Oil," said chief executive Chris Green.

Circle, listed on London's Alternative Investment Market, aims to produce more than 10,000 barrels of oil and gas a day during the next three years as it looks for wells in Morocco, Tunisia, Oman and Egypt.

The placing price of 30p a share represented a discount of 6.25pc to the 32p price on Monday and the 141 million shares are equal to about a quarter of the company's outstanding shares. Mr Green said the company had looked at a Dublin listing and may look at one again in the future.

Irish Independent

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