(Panama)- Circle Oil has been awarded a prospecting license for block A, offshore Panama. The block is off the northern coast of Panama in the southwestern Caribbean and covers 30,000 sq km of the Colombian basin. This award now makes Circle Oil one of the largest offshore acreage holders in the region.
Much exploration activity in the area has provided evidence that the southern part of the Colombia basin is a rich and widespread hydrocarbon source. The basin margins in the block are known to contain a thick, deep sedimentary section that presents favorable geological structures for the accumulation of commercial quantities of hydrocarbons. In addition, various regional seismic studies indicate that thick sections of shallow water origin have been preserved in the area and there is also seismic evidence of gas hydrates.
Circle plans to immediately begin data interpretation work and, in 2006, intends to commence a full seismic program in order to fully evaluate the potential of this prospective area.
Circle Chief Executive David Hough was quoted as saying, "the Caribbean is attracting increasing industry attention and several of the major oil producers have already acquired substantial holdings in the area." This Caribbean development adds to Circle's growing global portfolio of major assets and strengthens the company's position in exploring in areas with the potential for large discoveries.