AIM-listed exploration firm Circle Oil said yesterday it has drilled an appraisal well to a depth of 10,750ft in the Al Amir development in Egypt, and test results point to good potential for successful water injection.

In an operations update, the firm said its rig has now been moved to start drilling the first injector well, Geyad-5X, on the Geyad field. This well will appraise both the Shagar and Rahmi sands for injection.

Chief executive Prof Chris Green said the drilling of the injector well forms part of Circle Oil’s plan to increase production rates in the medium and long term.

The NW Gemsa concession, which contains the Al Amir and Geyad development leases, lies 300kms southeast of Cairo in the Gulf of Suez basin.