Circle Gets Another Month from World Bank

Circle Oil, the AIM-listed company developing gas interests in Egypt, said June 24 that the World Bank has given it a further month’s suspension of the deadline to repay its loans – this time until July 22 2016.

World Bank subsidiary, the International Finance Corporation (IFC), also indicated its willingness to consider further waivers, as may be required, so that Circle can continue its Strategic Review.  

Circle said May 20 that its financial position was under significant pressure, with the risk that shareholders may be left with little or nothing once creditors are paid. It noted June 24 that dollar payments from state Egyptian General Petroleum Corporation remain unpredictable, with no sustained improvement to date.

Location of Circle's gas assets on Egypt's Red Sea coast (Map credit: Circle Oil)

A further update on Circle's financial state and its strategic review will be given in its annual results, due to be published before the end of this month. 

Mark Smedley | www.naturalgasafrica.com