Gemsa Up For Circle As Egypt Minnow Shakeout Continues

Canadian-listed but Egypt-focussed minnow SDX is looking to take over Dublin-listed rival Circle. Circle is the larger company in output terms, but has been on life support since 2015 due to mounting debts it has no hope of repaying.

Circle’s key producing asset is 40% of Egypt’s Northwest Gemsa field, whilst SDX output comes from its 10% stake of the same field. Chinese state firm Zhenhua operates with 50%. Output fell to 5,600 b/d for Q1-3 2016, down 26% on a year earlier.

Circle also has Moroccan production: 6mn cfd from the onshore Sebou permit. For 1H16 Circle’s sales revenue was $14.13 million (H1 2015: US$22.29mn): $6.63mn in oil sales and $0.5mn gas and NGLs in Egypt, and $7.0mn in gas sales in Morocco where the authorities pay a healthy $8.64/’000 ft³. (CONTINUED - 545 WORDS)