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Circle Energy announces sale of producing properties.

CALGARY--(BUSINESS WIRE)--May 6, 1996--CIRCLE ENERGY INC. (Alberta Stock Exchange:CEN) Circle Energy Inc. ("Circle") announces that it has accepted, subject to regulatory and shareholder approval, an offer made by Big Horn Resources Ltd. to purchase Circle's producing oil properties in Southwest Saskatchewan for $1.2 million.

The properties include a 22.17 percent interest in the Hazlet Unit and a 100 percent interest in the Gull Lake property. During 1995, sales from the properties averaged 153 barrels of 23 degree API crude oil per day and proved producing reserves are estimated to be 363,000 barrels as of January 1, 1996. These properties represent all of Circle's producing assets.

Circle is strategically committed to pursuing high reward exploration prospects using established technology together with leading edge science such as ground based magnetic horizontal gradient intensity and radiometric surveys to reduce finding costs and increase success rates. Circle's existing producing assets are not an integral part of the company's science based exploration focus.

A portion of the proceeds from the sale will be used to pay off all of Circle's debt in the amount of $822,000. The remainder of the proceeds, together with $1,093,000 raised by two previously announced private placements, will be used to fund Circle's Nisku/Leduc Devonian Reef drilling program in Central Alberta and other high potential exploration programs. -0- EDITOR'S NOTE: The Alberta Stock Exchange has neither approved nor disapproved of the information contained in this press release.

CONTACT: Circle Energy Inc.

Bill Baker, (403) 777-1926
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Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:May 6, 1996
Words:254
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