The Tunisian Authority approved Circle Oil Plc’s application to renew the exploration permit on its Mahdia Block offshore Tunisia, the company said Aug. 19.

The permit will be extended for three years, until Jan. 19, 2018. Circle is the operator with full working interest in the permit. There are commitments for one exploration well and one appraisal well, and a requirement to acquire 300 sq km of 3-D seismic.

Mahdia covers 3,024 sq km and contains the El Mediouni structure. The well hit oil shows in the Ketatna (Oligo-Miocene) carbonates. Mud losses prevented log data acquisition, but the company said the shows indicate “significant resource.”

The permit also covers other similar prospects, the company added.

Through a farm-out, Ireland-based Circle will select partners to evaluate and develop the El Mediouni structure and other prospects on the permit.