27 August 2008:  Production to Commence in Morocco.

Circle Oil Plc, the international oil and gas exploration and development company, is pleased to announce that it has completed the acquisition of a 60% interest in the Oulad N'Zala Permit in the Rharb Basin, Morocco. Office Nationale des Hydrocarbures et des Mines ("ONHYM") holds 40% of the permit. This permit contains the ONZ4 gas discovery well, which has now been tied into the local gas infrastructure.

Following a meeting of the partners it has been agreed that Circle is scheduled to commence production from the ONZ4 well on 15 September 2008.

 

David Hough, CEO of Circle, said:

"The signing of the Oulad N'Zala permit and ONZ4 production commencement agreement marks the beginning of revenues for Circle. This is a significant event for the Company and I believe a foretaste of the future as Circle expands its production in Morocco and other areas. I must thank all concerned who have worked hard to get Circle to this important stage in its development."