Irish exploration firm Circle Oil has avoided the ongoing tensions in Egypt – and continues to receive the money it is due from the country’s government, the company has revealed.
The Middle East and Africa-focused group saw production rise 47% from its operations in Egypt and Morocco in the first six months of the year, to 6170 barrels a day.
Output from its operations in Egypt is now around 11,000bopd, with 4400 of that due to Circle. The company also revealed it has still been receiving payments for its domestic use output from the Egyptian General Petroleum Corporation, despite the organisation being in debt and other firms saying they were in talks over unpaid money.
“While conditions in Egypt are attracting considerable media interest, our operations are unaffected and we continue to receive regular payments from EGPC,” the company said.
Profits rose 10% to $14.7million, with the company now having more than $23million in cash reserves.
Contractual issues had delayed drilling in its fields in Morocco, but those are now expected to start later this year – with an increased 12-well programme to combine the 2013 and 2014 plans.
“Daily oil and gas production levels are at a record level reflecting the benefit of previous investment and activity,” said chief executive Chris Green.
“We are also starting to move forward on our other existing assets and the recently added new Tunisian assets.
“The back to back drilling, combining both 2013 and 2014 drilling programmes, is designed to further enhance our Moroccan delivery and revenue stream. We have also tendered an additional 2D seismic survey for offshore Oman to delineate inshore exploration drilling targets.”