Circle Oil’s shares fell to 7% today after the company declared plugging and abandoning the Ksiri South exploration well on Sebour permit onshore Morocco.

The company, being an Irish incorporated Middle East and Africa focused oil and gas exploration and Production Company with a portfolio of assets in Morocco, Tunisia, Oman and Egypt said the well, which was targeting two objectives in the Miocene Gaddari sands, met with unexpected lithology above the primary objectives. The technical data from the well is being evaluated in line with available seismic with a view to assessing further drilling in this area at a later date.

"The drilling conditions at KSS-A proved challenging, and as a result it was decided to plug and abandon the well in order to allow time for a new well design to be engineered. Chief executive officer Mitch Flegg (photo) said. The rig will now be equipped to drill the Ksiri West (KSR-A) exploration well in the Sebou permit in the Rharb Basin.

"This was the most cost-effective approach and it will allow drilling of the KSR-A well to commence ahead of schedule. Although we are disappointed to have not reached the prognosed TD of KSS-A, we have minimized any cost implications by quickly moving on to the next well in the campaign." Flegg declared to Sharecast news.