Circle Oil has made a “significant gas discovery” following the preliminary results of drilling of the well KSR-12 in the Sebou permit onshore Morocco, the company said in a news release.

The well is located within the central area of the Sebou permit about 1.2 km (.7 mile) southwest of the KSR gas gathering station. The well was drilled to a total depth (TD) of 1,980 m (6,496 ft). Gas shows, which were confirmed by wireline logging, were encountered at two different levels within the objective Hoot sands, the release said.

The net gas pay encountered in the well from wireline log analysis is 19.5 m (64 ft) in the main target Intra Hoot sands and 1 m (3 ft) in the Upper Hoot. This is greater than pre-drill sand thickness expectation. Pressure testing showed that the Upper and Intra Hoot sands are not connected to the Hoot sands in the other nearby KSR wells, according to the release.

The 7-in. liner was run and cemented and the first test over the primary target Main Hoot sands flowed at a sustained rate of 8.09MMscf/d on a 20/64-in. choke over 8 hours with no decrease in well head pressure. The second test over the Upper Hoot sands produced at a stabilized rate of 2.32MMscf/d on a 9/64-in.choke over 10 hours. The well will be completed for future production in the Main Hoot sands and the Upper Hoot will be completed for production once the Main Hoot gas sands have been depleted, the release said.

A new rig has been transported to Morocco but due to recent heavy rains affecting access roads into the drill site area in Lalla Mimouna, where drilling platforms have been prepared, it cannot currently be delivered there. In order to avoid delay, the drilling sequence is being modified and the rig will now be transported to the KAB-1 bis location in the Sebou permit, where access is presently possible, the release continued. KAB-1 bis is a re-drill of the KAB-1 well, drilled in 2011 located downthrown to the NW-SE trending N'zala Fault in the northwestern area of the Sebou 3D survey.

The original KAB-1 well encountered swelling clays that compromised the integrity of the borehole and the well had to be abandoned prior to wireline logging and testing, according to the release. However, the well encountered good gas shows at the target level, a Miocene top Guebbas sand in a structurally downthrown location to the Kabarta Nose, northeast of the KSR-3, -6, -7 and -9 wells. KAB-1 bis has the same target with an adapted mud system to minimize drilling problems in a slightly more updip location. The primary target Guebbas sands are prognosed at a depth of 1,272 m (4,173 ft) measured depth (MD) and the TD of the well at 1,360 m (4,462 ft) MD.

While further modifications to the drilling sequence may be required due to weather and ground conditions, the rig is scheduled to move to drill Circle's first wells on the Lalla Mimouna permit, the company said. The first well of this campaign, LAM-1, is located in the central part of Lalla Mimouna Nord on the East-West trending Anasba Ridge, within the existing 3-D seismic area. The target of the LAM-1 well is for Miocene gas-bearing sands, similar to the Sebou discoveries made previously by Circle. The primary target sands are prognosed at a depth of 1,130 m (3,707 ft) MD and the TD of the well at 1,431 m (4,695 ft) MD. Further wells in the Lalla Mimouna and Sebou permits will follow to complete the current program, Circle said in the release. Updates on these wells will be provided in due course.