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CALGARY, June 6, 2012 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or
the "Company") (TSX VENTURE: SDX) is pleased to announce that the Al
Baraka-16 well has discovered oil in a separate fault block from the
main Al Baraka field and tested oil from the deeper Kom Ombo "C"
sand pay. This discovery has the potential of more than doubling the
current field production.
This development well was successfully drilled to a total depth of 7,590
feet in the basement. The well is located on Al Baraka development
lease on a separate fault block, immediately southwest from the main Al
Baraka field. The well encountered oil shows in the Six Hills F1, Kom
Omb "C" and Kom Ombo "A" sands. Cores were cut in the Six Hills F1 and
Kom Ombo "A" sands. Core and petrophysical analyses show 60 feet of oil
pay in the Kom Ombo "C", 18 feet in the Six Hills F1 and 4 feet in the
Kom Ombo "A".
The Kom Ombo "C" was selectively perforated in the interval 6,610-6,767
feet and tested with Nitrogen lift at a rate of up to 530 bopd. This
is the first commercial oil discovery in the Kom Ombo "C" sands where
oil shows were observed in other wells previously drilled on the
concession. The forward plan is to place the well on an extended
production test to establish a stabilized production rate, map the
extent of the pay and develop a plan for future step out wells.
West Al Baraka-2 Well:
The West Al Baraka-2 (WAB-2), the second oil discovery on the Kom Ombo
concession is currently awaiting hydraulic fracture stimulation (frac).
The frac program will be carried out by mid-June to determine the
commercial viability of this discovery.
This exploratory well, the second commitment well, is located 4.5 km
south of Al Baraka oilfield, 4.3 km south of AB-16 discovery and 5.5 km
northeast of the WAB-2 discovery. The well is proposed to be drilled
to a total depth of 6,700 feet into the basement to test a large
separate fault structure. The primary objective of this well is to
appraise the deeper Kom Ombo "C" sands updip from AB-16 with the
secondary objectives being the shallower Six Hills and Abu Ballas
Success at Faris-1 will open the Kom Ombo "C" sands play, as several
follow up prospects and development locations have been identified.
Current production from the Al Baraka field is averaging approximately
500 bopd gross.
The Kom Ombo concession is located onshore in the southern part of Egypt
some 1,000 km south of Cairo. It contains the Al Baraka oilfield,
producing light oil from multiple reservoirs and an exploration area of
Sea Dragon has a 50% working interest and is a joint operator of the Kom
Ombo Concession with Dana Gas owning the remaining 50%.
Al Amir SE-12 Well:
This development well, located in the south eastern area of the field
was spud on April 25, 2012. The well was targeting the Shagar and Rahmi
reservoirs at a depth of approximately 9,320 and 9,400 feet
respectively. The well was drilled to a total depth of 10,200 feet in
the Upper Rudeis and logged. Interpretation of the drilling and logging
information indicate the well crossed a fault resulting in the absence
of the Shagar and Rahmi reservoirs. The decision was then made to plug
back to 3,700 feet and sidetrack the well updip to the northeast.
Sidetrack operations are currently ongoing and the well is expected to
reach total depth in approximately 20 days.
Current production from the Al Amir SE and Geyad fields is approximately
9,700 bopd (970 bopd net to Sea Dragon). Cumulative production from the
NW Gemsa Concession has now exceeded 8.2 million barrels of 42 degree
API Crude oil.
The NW Gemsa concession is located onshore on the west side of the Gulf
of Suez, some 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 at 50%, as operator and Circle Oil PLC with 40%.
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 development of the
Al Baraka field and events or projections 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". 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
production development; political, social and other risks inherent in
carrying on business in a foreign jurisdiction, the effects of a
recessionary economy and such other business risks as discussed herein
and other publicly filed disclosure documents. Although the Company
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. 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
Company 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.
This news release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future
events. When used herein, words such as "intended" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are based on assumptions by and information
available to the Company. Investors are cautioned that such
forward-looking statements involve risks and uncertainties. Actual
results may differ materially from those currently anticipated. The
forward-looking statements contained herein are expressly qualified by
this cautionary statement.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
SOURCE Sea Dragon Energy Inc.
For further information:
Chairman, CEO and Director
President, COO and Director
Chief Financial Officer and Director
Brisco Capital Partners Corp.