/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, Sept. 28, 2011 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSXV: SDX) is pleased to provide the following update on its operations in Egypt.
NW Gemsa Concession
Al Ola -2 Well:
The well was spud on September 1st, 2011 and successfully reached its 9 5/8" casing depth of 9,390 feet.
Casing was run and cemented and the well resumed drilling to a depth of
10,002 feet. Two 60 foot cores were then cut in the Kareem Formation in
the interval 10,002 feet to 10,122 feet. This is the third of four
water injection wells planned this year for the Al Amir SE field for
the secondary recovery project by water flooding. The well is located
approximately one km west of Al Ola X-1 well and is targeting the water
leg of the Kareem Formation. It will be drilled to a total depth of
approximately 10,800 feet in the Upper Rudeis Formation.
The Geyad-5 water injection well was successfully drilled to its total
depth of 7,030 feet in the Upper Rudeis Formation. This well is located
approximately 1.1 km west-south west of Geyad-1X and 2 km west of the
recently drilled Geyad-3C producer. The well successfully penetrated
the Kareem Formation water leg as prognosed. The Shagar and Rahmi sands
were perforated in the intervals 6510-6525 feet and 6583-6599 feet
respectively. In addition, the South Gharib Formation looks prospective
and is currently being evaluated.
Water Injectivity tests are now underway with continuous water injection
expected to commence in Q-4, 2011. This marks the beginning of the
water flood project which will result in significant increase in
recoverable reserves and production levels from the field.
Current production from the Al Amir SE and Geyad fields is running
steady at around 7,600 bopd (760 bopd net to Sea Dragon). Cumulative
production from the NW Gemsa Concession has now exceeded 6.2 million
barrels of 42 degree API Crude oil.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with
Vegas at 50%, as operator, and Circle Oil PLC with 40%.
Kom Ombo Concession:
Geological, geophysical and engineering studies are continuing. Basin Analysis has confirmed the presence of a rich source rock in the
basal Kom Ombo Formation. Oil expulsion and migration information is
being used in the selection of new exploratory wells.
A new structural model for the Al Baraka field shows yet untested flank
areas with multiple zone potential. The new mapping will form the basis
for locating the development wells planned for the fourth quarter, 2011
and into 2012.
Discussions are ongoing for securing a new drilling rig and ancillary
services to be mobilized to Kom Ombo and begin operations during the
fourth quarter. All tubular and supplies have already been ordered and
are now available.
Production from the Al Baraka field is approximately 700 bopd (350 bopd
net to Sea Dragon).
Sea Dragon has a 50% working Interest and is a joint operator of the Kom
Ombo Concession with Dana Gas owning the remaining 50%.
Commenting on the latest developments on the Company's operations in
Egypt, Company Chairman and CEO Mr. Said Arrata stated "We are
anxiously awaiting the resumption of our drilling activities in the Kom
Ombo area now scheduled for the fourth quarter. The results of our
recent studies are very encouraging indeed and should provide good
guidance for the selection of future exploratory and development wells.
I am also very pleased with the progress made on drilling the water
injection wells in the Al Amir SE and Geyad fields. With the
commencement of the water flood project later this year we should begin
to see a substantial increase in our production in 2012".
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:
| Said Arrata |
Chairman, CEO and Director
| Tony Anton |
President, COO and Director
| Olivier Serra |
Chief Financial Officer and Director
+331 5343 9442