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 statement.
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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