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CALGARY, July 26, 2012 /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 program in Egypt.
NW Gemsa Concession
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.
Current production from the Al Amir SE and Geyad fields is approximately 9,500 bopd gross (950 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.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas at 50%, as operator and Circle Oil PLC with 40%.
Al Amir SE-12 ST Well:
This development well, located in the south eastern area of the Al Amir SE field was spud on April 24, 2012. The objective of the well was to appraise the Kareem Shagar and Rahmi sands. The well reached a total depth of 10,200 feet and was subsequently sidetracked to the northeast as the Kareem sands were faulted out. The sidetrack was successfully drilled to a final total depth of 10,315 feet, encountering 15.5 feet of oil pay in the Shagar sand.
The well was perforated in the interval 9,669 to 9,684.5 feet and flowed oil and gas on test at an average rate of 2,595 bopd and 4.7mmscf/d respectively, on a 48/64" choke. The well has now been placed on production at an initial flow rate of 1,038 bopd. The rig was released and moved to the Ola-3 well location.
Al Ola-3 Well:
This injection well, located in the southern part of Al Amir SE field, on the Al Ola development lease, was spud on July 16, 2012. The well is situated approximately 870 meters south of the Al Ola 1x well and 1,445 meters south east of Al Ola-2 well, and is prognosed to be drilled to a total depth of 10,320 feet into Upper Rudeis.
The primary objective of the well is to provide injection support to the Kareem sands in Al Ola area of the field. The well is currently drilling below 5,700 feet and is expected to reach its total depth by mid-August.
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 oilfield, producing light oil from multiple reservoirs and an exploration area of 11,400 km².
Current production from the Al Baraka field is averaging approximately 590 bopd gross (295 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%.
Al Baraka-11 well:
This well, located 330 meters south east of the Al Baraka-16 well, was standing suspended in the Six Hills "E" Formation. The Six Hills "F-1" zone was perforated in the interval 3,880-3,939 feet and successfully fraced. The well is currently contributing an average of 70 bopd to Al Baraka Field production.
West Al Baraka-2 Well:
The Abu Ballas Formation in this well was successfully fraced. During clean up the well tested 170 bopd. The well is currently shut in pending the declaration of commerciality and preparation of a Development Lease application before being placed on production.
Al Baraka-16 Well:
This well tested 530 bopd from the deeper Kom Ombo "C" sands. Upon placing the well on production the daily oil rates declined sharply. Reasons for the decline are being investigated.
This second exploratory commitment well located 4.5 km south of Al Baraka oilfield, was spud on June 26, 2012 and drilled to a total depth of 6,785 feet in the basement. The primary objective was the Kom Ombo sands in a large fault block. The well encountered oil shows in both the Kom Ombo C and A sands, however, it failed to produce oil on test and was subsequently plugged and abandoned. The rig was released and is currently being mobilized to the AB-17 location.
Total working interest production for the company is now averaging 1,245 bopd. The company is continuing its efforts in search of new growth opportunities with emphasis on Egypt and Sub-Saharan Africa.
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.
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SOURCE: Sea Dragon Energy Inc.
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