Exploration company Circle Oil has reported a 13% increase in its revenues for the first half of the year, but its profits fell due to an increase in operational activity.

Circle said its revenues for the six months to the end of June rose to $47.8m from $42.3m, while profits fell by 36% to $9.4m from $14.7m. 

The increase in revenues came on the back of an 11% rise in the volume of oil sold in Egypt with a similar increase in sales of gas in Morocco.  

The company recently announced a 100 million barrel discovery in Tunisia, which sent its share price up about 40%. It said the fine was a "potentially game-changing" event in the company's development. 

Circle said it had finished the first half of the year with increased revenue from its production in Egypt and Morocco. It said it is now drilling its second well - of 12 - in Morocco with the project having the potential to augment both its reserves and revenues in the country.

"Recently completed operations offshore Tunisia and forthcoming operations in both Oman and onshore Tunisia have the potential to further enhance our asset base. Circle will endeavour to grow the business, in the MENA region, both through the drill bit and with carefully selected, value-driven operations and acquisitions," the company said in its results statement

"An exciting period is ahead of us with the second half of the year including new drilling in both Morocco and onshore Oman," commented Circle's CEO Professor Chris Green.