Statoil to Resume N. Sea Project Following Tax Decision

- Statoil to Resume N. Sea Project Following Tax Decision

Tuesday, July 05, 2011
Dow Jones Newswires
LONDON
by Alexis Flynn

Statoil said it will resume development of the Mariner and Bressay field projects in the U.K. North Sea after the Treasury announced it would increase a tax allowance to companies investing in marginal fields.

"We welcome and are encouraged by the positive steps made by this announcement. The negative impact from the tax increase announced in March has been neutralized for the Mariner investment and the project is back on track," said Statoil spokesman Bard Glad Pedersen.

He added that the company is "working diligently with both the Mariner and Bressay projects toward a final investment decision. But it is with Mariner we expect the final investment decision by the end of 2012."

The U.K. government Tuesday offered a concession to the oil and gas industry by raising one tax allowance that applies to North Sea fields. The Ring Fence Expenditure Supplement will rise to 10%, from 6% previously, allowing companies to offset a greater amount of their expenses against their taxes and, "support investment in marginal fields," the U.K. Treasury said in a statement.

Statoil, Norway's largest oil producer, in March postponed development of the projects following the government's decision to raise to 32% from 20% the supplementary charge levied in addition to corporation tax on profits from U.K. oil and gas production.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Circle Oil Hits Gas Pay in Morocco

Circle Oil Hits Gas Pay in Morocco

Friday, April 15, 2011
Circle Oil plc

Circle Oil announced that the KSR-11 exploration well has been drilled, logged and successfully tested in the Sebou Permit, Rharb Basin, Morocco.

The Company confirms a gas discovery in the Main Intra Hoot target and secondary targets available for future testing in the Mid and Base Guebbas sands. The well tested gas at a sustained rate of 4.0 mmscf/d on a 16/64" choke from the Intra Hoot. The perforated Intra Hoot zone of 17.9 meters at 1,761.2-1,779.1 meters MD has a calculated net gas pay of 11.6 meters.

The Base Guebbas zone of 37.7 meters at 1,636.0-1,673.7 meters MD has a calculated net gas pay of 5.5 meters. The Mid Guebbas zone of 22.8 meters at 1,464.1-1,486.9 meters MD has a calculated net gas pay of 4.1 meters. The Guebbas Zones will be tested at a later date following production and depletion of the Intra Hoot producing zone.

The well is being completed as a potential producer.

A full technical evaluation of all the results of the well is underway. This will allow for future planning as a precursor to further assessment of the resource, including conducting an extended well test to give a more complete estimation of the reserves.

The drilling rig is now being demobilized to end the 2010-2011 drilling campaign. Work is underway for consolidation of the results of this campaign together with planning for the next drilling campaign. The preparations for Circle's third Moroccan drilling campaign include the acquisition of a new 3D seismic survey over areas of Circle's permits not previously covered by 3D seismic.

In parallel, recent engineering testing of underground crossings of public transport infrastructure have been successfully completed as part of the construction preparation for the new 8-inch pipeline. Work on the pipeline is progressing in line with management's expectations.

The Sebou permit lies to the north-east of Rabat in the Rharb Basin in Morocco. The Rharb Basin is a foredeep basin located in the external zone of the Rif Folded belt. The concession agreement, in which Circle has a 75% share and ONHYM, the Moroccan State oil company, has a 25% share, includes the right of conversion to a production license of 25 years, plus extensions in the event of commercial discoveries.

Prof. Chris Green, CEO, said, "I am very pleased to be able to report that we have yet again continued our drilling success in Morocco's Rharb Basin. The KSR-11 well has been completed and, when required, will be available for future production. We tested this well at a small restricted choke size and it still achieved a good flow rate with very quick pressure build up. The second drilling campaign has been very successful and we have increased our ability to both supply gas and incrementally increase our resources in line with the business plan for the area. Everyone has worked hard to achieve this result and it is definitely appropriate to thank staff and our service companies for their efforts and also to thank ONHYM for their continuing support to our endeavors."