Circle Oil gets extension for Mahdia licence in Tunisia

19th Aug 2015 10:47

(ShareCast News) - Circle Oil has been given approval by the Tunisian Authority to renew the exploration permit on its Mahdia block in Tunisia.The oil and gas exploration, development and production company said the permit, in which it has a 100% working interest, is being extended three years until 19 January 2018.The permit covers an area of 3,024km squared and contains the El Mediouni structure.The company said it intends to select suitable partners with whom it can evaluate and develop El Mediouni and other prospects on the permit. Circle said it has already had initial expressions of interest from a number of oil and gas companies with the financial strength and industry experience to make them suitable joint venture partners."This farm out strategy will minimise Circle's financial commitment, reduce risk, and still allow the company to benefit from the potential of the discovery. This approach is fully consistent with circle's strategy to grow the company in a sustainable manner and deliver value to shareholders in a low oil-price environment," it said.At 1054 BST, Circle Oil shares were flat at 6.25p.