After the completion of furnace maintenance by consumer in the first quarter 2010, the production in the permit will increase to a range determined by the consumer’s day to day requirements but will not exceed 2.5MMscfd until the planned new 6″ gas trunkline capable of delivering 16.0MMscfd is installed, the company said.

The engineering, planning and preparations for the new infrastructure continue. With the start of production from KSR-8, other producing wells in the area will be periodically shut in for pressure build up tests as part of the technical evaluation.

In line with expectations, the prognosed winter rainfall and associated flooding in the Rharb basin has occurred and work on the new drill sites has been temporarily curtailed. The civil engineering work and the drilling will recommence when conditions permit.

David Hough, CEO of Circle Oil, said: “We are pleased to have KSR-8 in production which sets the stage to increase production significantly once the new trunkline is installed. The last year has been transformational for Circle and this new production starts 2010 on the right note with much to look forward to this year.”