Shares in Circle soar on positive results

Limerick-based explorer Circle Oil saw its share price rise sharply this morning after reporting production results in Morocco…

Limerick-based explorer Circle Oil saw its share price rise sharply this morning after reporting production results in Morocco and Egypt.

Shares in the company climbed 5.8 per cent to 32 pence by 8.30am in London, valuing it at £132.3 million.

Circle Oil posted a first-half net loss of $15.9 million, compared with a loss of $2.15 million a year earlier, and said it expects growth to come from operations in Morocco, Egypt, Tunisia and Oman.

The firm said it has completed a six-well drilling programme in Morocco, making discoveries at five wells.

In Egypt, two wells at the Al-Amir field are producing 4,500 barrels of oil a day, almost doubling output from their initial 2,300 barrels a day, the company said.

"Daily production levels, particularly in Egypt, are building up and we are working hard to bring the next four gas wells in Morocco on-stream, which should result in a healthy increase in revenues from there," chairman Thomas Anderson said in the statement.

The company said it had cash balances of $8.8 million at the end of June.

Additional reporting: Bloomberg