Libya Oil Holdings has raised its stake in Circle Oil, a global oil and gas exploration and development company, to 29.66 per cent with an investment of £19 million ($33.5 million), thus becoming a major shareholder in the company.

Libya Oil Holdings is a wholly-owned subsidiary of Libya Africa Investment Portfolio.

Circle Oil said with the investment from Libya Oil Holdings, the company has successfully raised £33 million through placement of 173,684,211 new ordinary shares at a price of £19 each. 

The other principal participant in the placement was Kaupthing Bank HF of Iceland which invested £10 million (representing a 15.61 per cent interest in Circle Oil). 

Circle and Libya Oil Holdings have agreed to seek opportunities to work together on projects in Circle’s present areas of interest, said a top Circle Oil official.

'These funds will be used to cover the cost of Circle’s aggressive exploration programme in Morocco, Tunisia and Egypt. Circle plans to drill up to 15 wells between now and the end of 2009 and will also conduct a large 3D seismic study on Block 49 in Oman,' pointed out David Hough, Circle chief executive officer.

According to Hough, Circle and its partners currently have three drilling rigs under contract to carry out the planned drilling programme.

The new shares will be admitted to trading on AIM at 08.00 on September 10, 2009.  Following the admittance of the new shares, Circle will have 337,131,411 ordinary shares in issue.

“I am absolutely delighted that Circle has been able to raise such significant new investment in the Company, particularly from investors of this calibre, in what remain very tough financial market conditions,' he noted.

'Shareholders can rightly regard this success as a real endorsement of Circle’s strategy and future prospects. We have ahead of us much to be excited over, beginning on September 15 with Circle’s first production revenues, and over the next year, with an aggressive exploration drilling programme,' he added.-TradeArabia News Service