Circle Oil drills another promising shale well in Morocco

Flags of Morocco
Source: DollarPhotoClub

Limerick-based company Circle Oil, which focuses on North African basins, has announced a considerable shale discovery in Morocco. The Ksiri West-A (KSR-A) exploration well on the Sebou Permit, onshore Morocco, yielded preliminary results of about 8 million cubic feet of natural gas per day.

The well reached a total depth of 1,890 metres MD on 19 September 2015. Prospective gas zones were logged, and a completion string installed in preparation for well testing and then connection to existing production facilities.

The well will be tied back to the 75 percent owned Circle Oil pipeline from Sebou to the industrial area of Kenitra ready for production. The well is approximately 680 metres to the west of KSR-11, for production line tie-back, and 1.12km west of the Ksiri sub-station. The production concession has validity through 2024.

According to a study by the EIA, Morocco could potentially hold up to 566 billion cubic meters in shale gas. Despite that the country is dependent on foreign imports for almost 90 percent of its needs, with crude oil and coal purchases accounting for almost 3 percent of the country’s GDP ($3 billion).

The country is eager to develop its hydrocarbon reserves and recently has been attracting attention from E&P companies. Apart from Circle Oil, also San Leon Energy and Longreach Oil and Gas have expressed interest in Morocco’s unconventional reserves. Since January 2015, they have been joined by the giants like BP, Chevron, and India’s Cairn announcing new projects or buy-ins to existing efforts – as Forbes reports.

Commenting on the recent results, Circle Oil’s CEO, Mitch Flegg, said: “We are delighted with the results of the KSR-A well. The flow rates achieved during the well test are at the upper end of our range of expectations and the well will now be tied in to our existing infrastructure and put into production as soon as possible. This gas will be sold at fixed rates which are not subject to oil price fluctuations.”

The Ksiri West-A well is a yet another success for the Irish exploration company, who in July announced another promising find in the Lalla Mimouna onshore permit area. At the time, the company’s CEO told the press: “We are delighted that our first well on the Lalla Mimouna block has such positive results, flowing gas at significant rates. The productivity of this first well is very encouraging for the expansion of Circle’s portfolio of Morocco gas fields.”

The Sebou permit is a partnership between Circle Oil Maroc Limited at 75 percent and ONHYM (Office National des Hydrocarbures et des Mines) at 25 percent.

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