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Friday 24 January 2020

Circle Oil stock surges on Tunisia oil strike

Circle Oil is focused on exploration in the Middle East, and has offices in the UK, Tunisia, Morocco, Egypt and Oman. Photo: Getty Images/iStockphoto
Circle Oil is focused on exploration in the Middle East, and has offices in the UK, Tunisia, Morocco, Egypt and Oman. Photo: Getty Images/iStockphoto
Donal O'Donovan

Donal O'Donovan

Shares in Limerick based Circle Oil shot up by almost 30pc each after the company confirmed it had struck oil in Tunisia. The 28.8pc spike in the share price added £29m (€36m) to the overall valuation of the company.

It came after the company announced preliminary results of drilling at its El Mediouni-1 well in the Mahdia Permit, off the coast of Tunisia. The well could contain as much as the equivalent of 100 million barrels of recoverable oil.

Circle's chief executive Chris Green told the Irish Independent that the company will now take a number of weeks to assess how to progress development at the site.

"We want to monetise this as quickly as possible, while maximising value for our investors," he said.

Unrest elsewhere in North Africa and the Middle East has not affected Tunisia, he said.

"Tunisia is absolutely fine, very normal," he said.

Investors rushed to buy shares following the news. More than 17 million shares were traded yesterday on the London Stock Exchange. Shares shot up 5.12 pence to 22.88 pence each - a gain of more 28pc.

Based in Limerick, Circle Oil is focused on exploration in the Middle East, and has offices in the UK, Tunisia, Morocco, Egypt and Oman. Analysts at Liberum said the strike could be worth more than 80 pence per share if initial estimates are confirmed.

Irish Independent

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