Successful well test for Circle Oil in Morocco
Irish-based oil and gas explorer Circle Oil has completed a successful well test at an asset in Morocco.
The well will be tied into the company's existing infrastructure and put into production "as soon as possible".
Circle chief executive Mitch Flegg said the flow rates achieved during the well test ware at the upper end of the company's expectations, adding that he was "delighted" with the result.
"This gas will be sold at fixed rates which are not subject to oil price fluctuations," Mr Flegg added.
The well is located in the onshore Sebou permit in northern Morocco.
"Another discovery on the prolific Sebou permit is welcome... short tie-in times before production improves the economics of these wells significantly," Cenkos analysts said, while Numis analysts said it was a "clearly encouraging result".
Investor reaction to the deal was muted. At 11:30am yesterday the company's shares were up just less than 1pc in London.