New pipeline allows Circle Oil to deliver gas to Morocco

13 February, 2012 The company expects the project to bring in revenues of $14 million.

Circle Oil has started delivering gas to Morocco thanks to a new pipeline which has been recently commissioned.

The company expects to hit annual revenues of $14 million (£8.8 million) from next month. Officials told investors that the new pipeline at its Rharb Basin has been tested, certified and approved.

It will be able to transfer 1.27 million cubic feet per day (mmcfpd) which is hoped to increase to 3.18 mmcfpd by March. Circle expects that production will grow further during the rest of the year reaching between 8.13 and 8.48 mmcfpd by the end of 2012.

Prof Chris Green, chief executive, said: "I am delighted to be able to report the successful start of commercial gas deliveries from our new pipeline in the Rharb. Circle and its partner have now begun to significantly increase gas supplies and associated revenues as the next step in further exploiting our Rharb acreage".

Africa has been under the spotlight for gas capabilities after Ophir announced that it would be increasing its activity in Equatorial Guinea after securing the use of a rig in the country.

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