CALGARY, Feb. 14, 2013 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or
the "Company") (TSX VENTURE: SDX) is pleased to announce the following
operational update for its recent work activities in Egypt.
FUTURE OUTLOOK: In 2013 the company's capital budget is expected to be approximately
$6.0 million to be financed entirely from existing cash flow. Average
production is expected to average 1,725 boe/d, an increase of
approximately 700 boe/d over 2012.
Sea Dragon is continuing to fully exploit its existing assets and expand
its operations in Egypt while seeking new high impact opportunities in
the MENA region and sub-Saharan Africa.
NW GEMSA CONCESSION
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 at
50%, as operator and Circle Oil PLC with 40%.
Current production from the Al Amir SE and Geyad fields is approximately
10,350 boe/d gross (1,035 net). Currently producing wells include seven
at Al Amir SE field, two at Al Ola and four at Geyad. Cumulative
production from the NW Gemsa Concession has now exceeded 10.4 million
barrels of 42 degree API Crude oil.
The gas conservation project is now complete and solution gas
conservation and incremental liquids production commenced on February
12, 2013. Preliminary volumes are 7.2 mmcf/d (720 mcf/d net) of sales
gas, 150 bpd (15 bpd net) of condensates and 38 tons (3.8 net) of
Water injection is ongoing with four injectors currently operating at Al
Amir SE Field and one injector at Geyad Field. Current total injection
rates are approximately 14,500 bwpd. Cumulative injection to date is
6.6 million barrels at Al Amir SE and 1.6 million barrels at Geyad.
Al Amir SE-14 ST#2 Well:
This development well was spud on November 26th with the objective of appraising the Shagar and Rahmi reservoirs between
the Al Ola-1x and Al Amir SE-12ST wells. The second side track hole
was successfully drilled to its total depth of 10,000 feet and
encountered net oil pays in both the Shagar and Rahmi reservoirs with
16 feet and 13 feet respectively.
Beyond the drilling of Al Amir SE-14, future plans at NW Gemsa include
the drilling of three additional water injectors and one producer in
2013, after which the rig is expected to be farmed out.
Total 2013 capital expenditures in NW Gemsa are expected to be US$ 30 (3
net) million and total gross production is expected to average 10,000
(1,000 net) boe/d.
SHUKHEIR MARINE CONCESSION:
The Shukheir Marine Concession is located in the shallow offshore waters
of the Gulf of Suez approximately 300 km southeast of Cairo. Following
the acquisition of 100% interest in the concession which contains both
the Shukheir Bay and Gamma oil fields, Sea Dragon began a comprehensive
review of the upside potential believed to still exist in both fields.
Short term and within the next two months, the company plans to conduct
an acid stimulation treatment in the Gamma #1 well and a work over and
recompletion operation in the Shukheir Bay #5 well. With success these
operations could result in a production increase of 100-200 bopd.
Exploratory drilling opportunities may also exist in the Gamma
concession, prospecting the prolific Nubia Formation and in the
Shukheir Bay field in the Upper and Lower Rudeis Formations.
Current production from the concession is 415 bopd. Sea Dragon is the
sole owner and operator of the concession.
Total 2013 capital expenditures in Shukheir Marine are expected to be
US$ 1.0 million and total production is expected to average 470 bopd.
KOM OMBO CONCESSION
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 and the newly
discovered W. Al Baraka oilfields, producing light oil from multiple
reservoirs. Sea Dragon owns a 50% working interest and is a joint
operator of the Kom Ombo Concession with Dana Gas owning the remaining
West Al Baraka #2 Well: The well was completed in December 2012 and placed on an extended
production test. Production rates averaged 120 to 250 bopd. The well is
currently shut in awaiting a bottom hole pump replacement.
As a result of the successful completion and testing of the well, a
Development Lease was recently granted by the Petroleum Ministry.
Once the development plan is granted, an appraisal/development drilling
program will commence which could involve the drilling of up to three
Total 2013 capital expenditures in Kom Ombo are expected to be US$ 4 (2
net) million and total gross production from existing wells is expected
to average 510 (255 net) bopd.
Current production from the Al Baraka field is approximately 500 gross
(250 net) bopd.
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
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.
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
+331 5343 9442
Brisco Capital Partners Corp.