Historically the geology and potential of (the area that is now the Mahdia Permit and the surrounding offshore area was successfully explored by Shell and Total. Previous exploration has resulted in discoveries and commercial oilfields including fields such as Tazerka, Birsa, Oudna, Halk El Menzel and Isis. The Mahdia PSA Award was made in July 2007 to Tethys and the farm-out agreement to Circle was signed on 22nd May 2008. The initial 2 year Prospection Term plus 3 year Exploration Permit was ratified in November 2009.
Circle will become operator prior to the commencement of any drilling in the permit. The permit commitments required the acquisition of 500 kilometres of 2D seismic in the first two years of the licence and this was completed in February 2009. Additional 2D infill seismic is under consideration for acquisition in 2011. This is to be followed by the drilling of one commitment well in the subsequent three years to July 2012.
Prospects
The permit contains multiple undrilled prospects which have already been mapped from the existing datasets and the additional seismic is being used to enhance ranking and prioritization of all the prospects prior to drilling. To date 9-11 leads and prospects are being mapped and risked for drilling. The targets range in size from 7MMBO to in excess of 60MMBO (unrisked gross) and are located in water depths ranging from 80 metres to in excess of 200 metres. Whilst the prospective horizons are relatively shallow sub seabed ranging from 500m sub seabed to 1500m sub-seabed. The drilling programme has yet to be scheduled and the company will seek to share costs for mobilization of a drill rig with other operators in the area.