Sea Dragon Announces Recent Well Results in NW Gemsa
Al Amir SE #18 Development Well & Shehab-2 Exploration Well
CALGARY, Aug. 8, 2013 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE: SDX), an oil & gas exploration and production company with assets in Egypt, is pleased to announce the Al Amir SE 18 development well has encountered significant oil bearing reservoir section in the Kareem formation and will be completed as a producer. The Shehab-2 exploration well successfully reached TD, encountering potential gas bearing sands in the Rudeis formation and water wet intervals in the Kareem horizon. Subsequent production tests failed to flow to surface and the well will be temporarily abandoned pending further evaluation.
Al Amir SE-18 Well:
Al Amir SE-18 (AASE-18) was drilled to a depth of 10,400 feet where both the Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 34 feet of net Shagar oil pay and 32 feet of net Rahmi oil pay. The well was originally drilled as a proposed injector but the structure was encountered 200 ft. high to the original prognosis with the encountered intervals being also thicker and better quality than the most recently AASE-17 well. The AASE-17 well flow tested 3,664 BOPD from a 12 net foot interval in the Shagar as reported on June 21, 2013. The AASE-18 will be completed in the Rahmi as a producer with the well being tested prior to being put on production. The results of this flow test will be reported in a future announcement.
Shehab- 2 Exploration Well
The Shehab-2 exploration well, located approximately 2 Kms north of the Geyad field, was spud on June 19th, targeting the Kareem horizon. The well encountered 30 ft of potentially gas bearing sands in the Upper Rudeis limestones and good quality intervals in the Kareem horizon, which proved to be water bearing. The Upper Rudeis limestone intervals were subsequently fracture stimulated and tested but failed to flow. The well has been temporarily abandoned while alternative stimulation and completion options are investigated.
The NW Gemsa concession is located onshore on the west side of the Gulf of Suez, approximately 300 km southeast of Cairo. Two main oil fields are producing light oil, the Al Amir SE field along with the Al Ola extension to the south and the Geyad field to the north. Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas oil and gas at 50%, as operator and Circle Oil PLC with 40%.
The company's net production in Egypt averaged 1,980 boepd during the month of July 2013, with 1,307 boepd net from NW Gemsa, 222 bopd from Kom Ombo and 451 bopd from Shukheir Marine.
Commenting, Paul Welch, CEO of Sea Dragon, said:
"The AASE18 well results were both surprising and very positive. We can expect another strong producer in this part of the field as it extends towards the south east. NW Gemsa is a great asset, continuing to grow and expand and we are excited about its future potential. Initial results from the Shehab-2 Exploration well were not as hoped but given the thick hydrocarbon bearing interval encountered in the Rudeis limestone potential remains. We will continue to review the completion options with the operator to determine if value can be unlocked from this horizon. I look forward to reporting on this well as well as the results of the flow test in the AASE18 well in the future."
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning the 2012 drilling and capital expenditure programs of the NW Gemsa and Kom Ombo Concessions and the results referenced or implied herein should be viewed as forward-looking statements.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". All reserves information contained herein as well as the net present value of such reserves should be considered as forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and development and political, social and other risks inherent in carrying on business in Egypt. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Although Sea Dragon has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Actual results may differ materially from those currently anticipated. See Sea Dragon's Annual Information Form for the year ended December 31, 2011 for a description of the risks and uncertainties associated with the Company's business, including its exploration activities. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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SOURCE Sea Dragon Energy Inc.For further information:
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Philip Dennis / Joanna Boon
Pelham Bell Pottinger
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