/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
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 Formations.
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 11,400 km².
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.
For further information:
Chairman, CEO and Director
President, COO and Director
Chief Financial Officer and Director
Brisco Capital Partners Corp.