Investment company Legendary Investments PLC is to acquire a 2% stake in the offshore Mahdia PSC, from operator Circle Oil Tunisia Ltd (COTL). The deal was agreed in late-December 2017 and is for a cash sum of PS100,000 (c.US$ 130,000). The management of COTL will also gain Legendary's stake in a gold project in Kyrgyzstan, via Manas Resources LLC. The 3,024 sq km block is located in the Gulf of Hammamet, north of Lampedusa Island. The PSC was originally signed between Circle Oil (70% + Op) and Tethys Oil & Mining (30%) on December 2009. The concession agreement was converted from a previously held prospecting permit. In 2013, Circle acquired the remaining 30% stake from Tethys, in a US$ 3 million deal. In August 2014, the company drilled the El Mediouni 1 (EMD 1) NFW (TD 1,200m, WD 216m). It encountered a 133m gross oil column in Miocene Birsa sandstones and Ketatna carbonates. A farm-out campaign in order to develop the discovery was launched, but failed to attract any offers.On 15 March 2016, Circle Oil announced that it had initiated a formal strategic review of its business and assets in order to reduce its debt, which stood at a total of US$ 77.5 million at the time. The company stated in May 2016, following a review of proposals to date and the debt situation that, "it is likely that there will be little or no value attributed to Circle Oil plc holders." The company's shares were suspended on 29 June 2016 and cancelled in December 2016. In late-January 2017, SDX Energy completed the acquisition of Circle's Egyptian and Moroccan assets, with the detailed fate of its Tunisian assets unclear. However, it now appears that the company's Tunisian assets have been restructured and are under new management, with Circle Oil Tunisia Ltd (COTL) operating as an independent entity. At the time of share cancellation, the company also held non-operated equity in the Ben Khaled (30%) and Ras Marmour (23%) licences, in partnership with Exxoil SA. The fate of these assets is unresolved.UK-registered Legendary Investments is listed on the London AIM. The acquisition is the company's first foray into the oil & gas industry.
Tunisia, Mahdia