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Circle Oil, Ithaca Energy, Amerisur Resources, Enegi Oil, MEO Australia news briefs

Contributed by Fox-Davies Capital

Circle Oil - Foundations Laid…Time to Start the Delivery Phase: While the increase in revenues is pleasing, the real story here is the improvement in the operational gearing, hence cash flow. While management note that the receivables have declined, we are uncertain as to whether they are talking in absolute terms, or in terms of debtor days, which would of course reflect the higher revenues. Still, with a healthy drilling portfolio and a buoyant cash flow outlook, if not quite delivering on the face of these results, we are reiterating our 95p Target Price and BUY recommendation.

- Group turnover increased by 23% to $35.4mm (H1 2011: $28.7mm)
- EBITDA up 60% to $18.9mm (H1 2011: $11.8mm)
- Profit after tax up 53% to $13.3mm (H1 2011: $8.7mm)
- $30mm convertible loan extended for a further three years to July 2015
- EGPC receivables have reduced since year-end despite higher sales revenue
- New pipeline commissioned in Morocco and gas sales doubled to 4.3-4.5mm scfpd
- Two new producing wells and one new injector successfully drilled in Egypt
- Two exploration wells planned in H2 2012 in Tunisia with pre-spud civil engineering works underway in Grombalia
- New 2D seismic survey currently being acquired onshore Oman
- Initial results of Lalla Mimouna 3D seismic in Morocco confirms prospects for 3rd drilling campaign which is scheduled to commence late 2012.

Ithaca Energy - Hurricane well - Successful Test Results: Success of the Hurricane appraisal well (29/10b-8) goes a long way in establishing prospectivity of the Andrew reservoir play fairway in the Greater Stella Area. The Company is now evaluating development options for Rogaland and Andrew reservoirs and integrating them into the ongoing development of the nearby Stella and Harrier fields. We like Ithaca Energy for its balanced portfolio which is spread strategically across exploration, development and production phase, and its strong balance sheet. At the end of Q2'12, the Company had cash balance of $132.1mm along with an undrawn debt facility. Expect positive movements today. In this news:

- The DST achieved a gross maximum flow rate of approximately 24 MMscf/d with associated condensate of 1,200 bbl/d from a 44/64-inch fixed choke.
- The wellbore will now be suspended as a future Andrew reservoir production well with the capability of also producing from the Rogaland reservoir.
- During the main flow period lasting approximately 24 hours, the Andrew interval achieved an average gross flow rate of approximately 17 MMscf/d with associated condensate of 870 bbl/d (52° American Petroleum Institute ("API") Gravity) from a half inch choke.

Amerisur Resources - Platanillo Update: With the spudding of third well (Platanillo-5), the company is on track to drill eights wells by year end on Platanillo Field, Colombia. The first two wells are producing at the combined controlled rate of 2,000 bopd and Amerisur expects to achieve exit production of 5,000 bopd by year end - which would be a significant milestone and could potentially lead toa  re-rating of the stock.

Enegi Oil - Clare Basin Update: Field studies conducted by the Company to assess the Clare Shale for its shale gas potential have been encouraging. In a step further, the Company has engaged Fugro Robertson to prepare an independent estimate of the in-place resources within the acreage covered by the optional onshore petroleum licensing. We look forward to the results from the Fugro Robertson report.

MEO Australia - Drilling Underway!: MEO's timely update serves to remind us that this is a company that is well funded with a 3 well programme in 3/4Q'12 (2 appraisal wells, 1 exploration well). With a 60 day drill time, we would imagine the Company to start to trade towards our A$0.60 Target Price, hence we are reiterating our BUY recommendation. In this news:

- Heron South-1
Testing the the productivity of the Elang-Plover reservoir and gas composition.
- Eni Australia operator (50% MEO and 50% Eni)
- 20" casing has been run and cemented at 1,310 metres.
- Wellhead and Blow Out Preventer on the 20" to be installed imminently
casing before drilling the 17½" hole to a target depth of around 3,000 metres.
- well spudded on the 24th August 2012
planned to be drilled to at least 4,230m or the gas water contact,
expected to take around 60 days.