Circle Oil has received a six month extension from the Direction Générale de l’Energie for the fourth validity period of the 2,792km2 Grombalia Permit located in Tunisia.
The company is now preparing to drill exploration well Bou Argoub-1 (BAB-1) in the South West Belli area of the Grombalia Permit, near to the Belli, El Manzah and Beni Khaled fields.
Drilling is expected to commence in the second half of 2012 for the permit, which has been extended until 18 December 2012.
Circle Oil CEO Chris Green said the preparations are now underway for the drilling of the exploration well in the Grombalia Permit.
"This type of fault-bounded structure has proven historically to be successful for drilling," Green added.
Circle Oil is expecting the total depth of the BAB-1 well to be 1,350m and is targeting a fault-bounded structural culmination crossing two vertically stacked fractured carbonate reservoirs, the Eocene Bou Dabbous Formation and the Late Cretaceous Abiod Formation.
These reservoirs are the main oil-producing formations in the north eastern part of Tunisia.
Exxoil Tunisie is the operator of the permit and has a working interest of 65% whereas Circle Oil owns 35% interest.
