CIRCLE Oil is expected to announce this week that it has been awarded an increased area for gas exploration in Morocco.

The Limerick-based company will be able to drill for gas in fields in an area of about 2,500 sq km. It had been exploring an area of about 250 sq km. The fields are located about 100km from Casablanca. The company will drill six wells, it is understood.

Circle Oil said in December that preparations for drilling in Morocco were well underway but it has held off until the second quarter of this year when weather conditions improve.

In addition to Morocco, the company is exploring for oil and gas in Egypt, Namibia, Tunisia and Oman in the Middle East.

Shares in Circle Oil, quoted on the Alternative Investment Market in London, have gained almost 70% in the past year, valuing the company at £132m ($152m).