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Limerick company strikes black gold

Circle Oil's share price rose by a quarter after it announced it has discovered a major oil field in Tunisia

Circle Oil's share price rose by a quarter after it announced it has discovered a major oil field in Tunisia

LImerick based oil-exploration firm, Circle Oil, has published results from drilling in Tunisia that indicate it is sitting on top of 100 million barrels of oil.

Taking into account the cost of a barrel of crude oil (around $102), this would value the firm’s discovery at a massive $10.2bn, or €7.7bn.

The news of the discovery, revealed this week, saw shares in the London Stock Exchange listed company rise by more than a quarter.

Chief executive Chris Green said: “We are extremely pleased to add this potential large discovery to our portfolio in Tunisia. It is unfortunate that the hole conditions became untenable so quickly and we were unable to conduct a full log appraisal effort forward on the Mahdia Permit.

Earlier this year the company it reported record revenue, up 27pc to €68.7m for 2013, as it defied volatile conditions in north Africa and the Middle East.

Although based at Riverpoint in Limerick city, Circle Oil’s activities are almost entirely focused on Africa and the Middle East.

 

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