LONDON, May 6, 2014 /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 21
development well in North West Gemsa, has encountered significant oil
bearing reservoir sections in both the Kareem Rahmi and Shagar
formations and will be completed as a producer in the Shagar.
Al Amir SE-21 Well:
Al Amir SE-21 (AASE-21) was drilled to a depth of 9,400 feet where both
the Shagar and Rahmi oil reservoirs were encountered. Log analysis
indicates 19 feet of net Shagar oil pay and 4 feet of net Rahmi oil
pay. The well has been completed as an oil producer in the Shagar and
has flowed on test light 42.2⁰ API oil at a rate of 3,005 BOPD with
3.288 MMSCFD of associated gas. The well will be placed in production
as soon as the completion rig is moved off location.
Commenting, Paul Welch, CEO of Sea Dragon, said:
"The AASE21 well results were excellent and the well is expected to be
another solid producer from the Shagar. The AASE-21 well is the last of
the producers to be drilled in the field in 2014. The currently
budgeted program includes only one additional well, AASE-22, which is
now drilling and is planned as a Rahmi water injector. The drilling
rig will then be released, markedly reducing Capex and allowing the
field to be significantly cash generative for the remainder of 2014 and
beyond. The technical results from the recent development activity
will be incorporated into an updated geologic model which will then be
calibrated by field production performance over the next year. Future
development activity will be based upon the results of this new model.
Field production is anticipated to remain at the current plateau rate
of approximately 11,500 Bopd and 12 MMscfd as the full impact of the
waterflood program is realized."
The North West 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 North West Gemsa Concession
with Vegas oil and gas at 50%, as operator and Circle Oil PLC with 40%.
The company's current net production in Egypt is 1,680 boepd with 1,280
boepd net from NW Gemsa, 400 bopd net from Shukheir Marine.
About Sea Dragon Energy Inc.
Sea Dragon is an international exploration and development oil company
with a focus on North Africa and the Middle East. Activities are
currently concentrated in Egypt, with interest in 4 concessions with
short and long term potential. For further information please see the
website of the Company at www.seadragonenergy.com or the Company's filed documents at www.sedar.com.
Certain statements contained in this press release constitute
"forward-looking statements" as such term is used in applicable
Canadian and US securities laws. 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 should be viewed as forward-looking
statements. In particular, statements concerning the 2014 drilling and
capital expenditure programs of the NW Gemsa, Shukheir Marine, South
Disouq and South Ramadan Concessions and the results referenced or
implied herein 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.
The forward-looking statements contained in this document are based on
certain assumptions and although management considers these assumptions
to be reasonable based on information currently available to it, undue
reliance should not be placed on the forward-looking statements because
the Company can give no assurances that they may prove to be correct.
By their very nature, forward-looking statements are subject to certain
risks and uncertainties (both general and specific) that could cause
actual events or outcomes to differ materially from those anticipated
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. See Sea Dragon's Annual Information Form for the year ended December 31,
2012 for a description of the risks and uncertainties associated with
the Company's business, including its exploration activities. The forward-looking statements contained in this press release are made
as of the date hereof and the Company does not undertake any obligation
to update publicly or to revise any of the included forward-looking
statements, except as required by applicable law.The forward-looking
statements contained herein are expressly qualified by this cautionary
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:
Sea Dragon Energy Inc.
President and Chief Executive Officer
Tel: +44 203 219 5640
Chief Financial Officer and Director
Tel: +44 203 219 5640
Bell Pottinger (Financial PR)
Philip Dennis / Joanna Boon
Tel: +44 (0) 207 861 3232
Brisco Capital Partners Corp. (Investor Relations)
Tel: +1 (403)262.9888