Shares in Circle Oil dip despite ‘buy’ rating
Shares in Limerick-based exploration firm Circle Oil dipped in London this morning even as broker Investec reaffirmed its ‘buy’ rating on the stock and the company provided an update of its operations in Egypt.
Circle Oil said that the so-called Shagar interval at its AASE-17 well in the north African country is currently producing oil at an initial rate of 1,134 barrels a day, as well as 1.31 million cubic feet of gas a day.
The company said that the initial total daily production rate from the AASE and its Geyad fields in the country now stands at 11,038 barrels of oil and day and 11.6m cubic feet of gas a day.
It added that the total overall production rate represents a 30pc increase from the start-up of gas production in 2013.
“This well has provided additional Shagar production potential to complement our impressive 2013 production rates,” said chief executive Chris Green.
An exploration rig has now been moved to a drill at the company’s Shehab-2 well.
“If successful, the well has the potential to further add to both our reserves and daily production levels,” said Mr Green.
But shares in AIM-listed Circle fell over 1.5pc this morning