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Circle Oil, Gulfsands Petroleum, Tullow Oil, Greystar Resources Ltd, African Eagle Resources, African Minerals news briefs

By Fox-Davies Capital

Circle Oil announced that the Geyad-2X ST1 appraisal well has been successfully drilled and tested in the onshore North West Gemsa Concession in Egypt. The Company confirmed that the Kareem Formation Sandstones under test flowed 42oAPI oil at sustained average rates of 3,850bopd and 4.62MMscfd of gas using a 48/64" choke from the upper of two identified pay zones. The well, which is the second appraisal well to be drilled on the Geyad discovery area, is being completed and prepared for connection. Log result interpretations indicate that the total net thickness of the two pay zones is approximately 32ft. The upper tested pay zone identified in the Kareem Shagar Sandstone is 14ft thick. The lower untested pay zone in the Kareem Rahmi Sandstone is 18ft thick and will be further evaluated at a later date. A full technical evaluation of all the results is underway to permit development planning and is a precursor to further assessment of the resource potential. An assessment of reserves has not yet been completed. The drilling rig will now move to commence drilling the Al-Amir SE-5 well which is the fourth appraisal well in the Al-Amir SE discovery area. The primary target is again the Kareem Formation, but this well is being drilled primarily to delineate a reservoir boundary which is required for technical reasons and therefore the well may not become a producer. The North West Gemsa Concession partners include Vegas Oil and Gas (50% and operator); Circle Oil (40%) and Sea Dragon Energy (10% interest).

Comment: This appraisal success is an excellent result for the Company. Current production in NW Gemsa is 7,350bopd and it will soon increase as Geyad-2X ST1 and the heavier oil from Al Amir start contributing; estimated production then will certainly exceed 9,000bopd gross.

Gulfsands Petroleum announced an update on the drilling of the Khurbet East-14 delineation well, located approximately 1km north of delineation well KHE-12 and approximately 4.9km south of the KHE-1 discovery well. The well was drilled to 2045m measured depth (MD), and encountered the top of the Cretaceous Massive Formation at a MD of 1988m. The preliminary interpretation of drilling data and wireline logs identified a gross oil column at the top of the Massive Formation of 14m, with a net oil pay of 6m and average porosity within the pay zone of 22%. An open-hole drill-stem test was conducted over 1982-1998m MD. The KHE-14 well flowed oil of 27?API at an average rate of 613bopd for a 7 hour period on a 2" choke using nitrogen lift. Negligible quantities of formation water were produced during this flow period.

Tullow Oil announced that the Tweneboa-2 exploratory appraisal well, being drilled 6km southeast of the Tweneboa-1 discovery has intersected a significant combined hydrocarbon column. Results of drilling, wireline logs and samples of reservoir fluids establish that Tweneboa is a major oil and gas-condensate field. The well has encountered a gross reservoir interval of 153m containing 32m of net hydrocarbon pay in stacked reservoir sandstones, comprising a 17m oil bearing zone below a 15m gas-condensate bearing zone. A combined hydrocarbon column of at least 350m has been established between the lowest known oil in Tweneboa-2 and the top of the gas-condensate at Tweneboa-1. Following completion of logging operations the well will be deepened to test further exploration potential beneath the Tweneboa field. The well will then be suspended for future use in appraisal and development.

Greystar Resources Ltd announced the initial assay results from the targeted drill program to investigate high grade mineralization at the Los Laches area of the Angostura gold-silver deposit. The Los Laches area is structurally complex, influenced by the intersection of the Romeral, Paez, and Pozo faults with the Silencio and Los Laches vein systems. This combination of intersecting structures and structural damming has resulted in high grade gold and silver mineralization. The mineralization has been drilled vertically for over 400 meters which indicates the potential for continuity of the high grade structures at depth. Additional drilling is required to test the western strike extension of the Los Laches high grade mineralization in the direction of the La Alta East area where the El Pozo fault is an important focus of mineralization. In addition, further drilling will continue to test the high grade mineralized structures at depth. Currently two drill rigs are drilling at Los Laches.

Comment: Although fairly deep with most intersections below 200m there are some excellent grades and widths.

African Eagle Resources announced the results from our Dutwa nickel project in Tanzania. Metallurgical tests have shown Dutwa to be one of the most amenable nickel laterite deposits in the world to low-cost leaching techniques. The exceptional mineralogy of the deposit appears to be facilitating excellent nickel recovery. It exercised an option over the adjacent Ngasamo deposit, which is believed, could add around 50% to the Dutwa resource. The scoping study indicated that the project is likely to be economically viable.

African Minerals announced that it has conditionally raised ?80M, gross, (approximately US$130M) by way of a cash placing with institutional investors. A total of 20,000,000 new common shares of the Company will be underwritten at a price of 400 pence per share.  The proceeds of the Placing are to be used to commence construction of  key infrastructure for Phase 1 of the Company's flagship iron ore project at Tonkolili, referred to in the Company's announcement of 6 January 2010.