Circle Oil has confirmed it intends to seek a farm-in partner for its highly-anticipated offshore Tunisian assets.
According to “Irish Examiner,” the northern African-focused firm, which yesterday (September 5) received a warm reception from shareholders at its Dublin AGM, last month saw its market value jump by over €30 million and its share price rocket by nearly 30% on the back of it announcing a potentially transformational oil discovery off the coast of the African nation.
Early results from drilling on the Mahdia Permit — Circle’s first ever offshore prospect — suggested estimated recoverable resources of around 100m barrels of oil, leading analysts to use terms like “very significant discovery” and “potentially transformational“.
It is understood that drilling costs, regarding the offshore asset, amounted to $30m (€23.2m).
It is also understood that the Tunisian Government holds an option to buy into a maximum of 50% of the Mahdia Permit, although it is thought that it might buy a smaller percentage, leaving the way clear for another external party to invest also.