Al Amir SE #17 Development well tests at a gross rate of 3,664 bopd
Shehab-2 Exploration Well Spudded
CALGARY, June 24, 2013 /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 17 development well was successfully tested at a rate of 3,664 bopd and that the Shehab-2 exploration has subsequently been spudded. Both wells are located in the prolific NW Gemsa concession.
Al Amir SE-17 Well:
Al Amir SE-17 (AASE-17) was drilled to a depth of 9,905 feet where both Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 12 feet of net Shagar pay and 16 feet of Rahmi net oil pay. The well was perforated in the Shagar from 9,560-9,580 feet and flow tested 3,664 bopd of oil on an 8/64 inch choke, with a flowing wellhead pressure of 800 psi. The well is now producing following completion of testing at a restricted initial rate of 1,134 bopd and 1.31 MMscf/d on a 24/64" choke. The concession production rate is restricted by surface off-take facility constraints and will be limited to 12,500 bopd until field improvement projects have been completed.
Shehab - 2 Exploration Well Spud:
After completing the Al Amir SE-17 well, the rig was moved to the Shehab-2 exploration well location approximately 2 kms north of the Geyad field. The well spud on June 19th, targeting the prolific Kareem horizon at a projected total depth of 5,000 feet. If successful, the well is anticipated to open up an area similar in size to the Geyad discovery. Drilling and completion operations are anticipated to take between 30-40 days.
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 oil and gas at 50%, as operator and Circle Oil PLC with 40%.
The company's net production in Egypt averaged 1,933 boepd during the month of May 2013, with 1,245 boepd net from NW Gemsa, 206 bopd from Kom Ombo and 482 bopd from Shukheir Marine.
Commenting, Paul Welch, CEO of Sea Dragon, said:
"The AASE17 well represents a further strong result and again underpins our production and cashflows, within our producing areas in Egypt. I am also very excited about the potential of the Shehab-2 exploration well which, if successful, will continue the impressive record of production growth within the NW Gemsa concession. I look forward to reporting on the results of this well in the near future".
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 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". 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:
President and CEO
Chief Financial Officer and Director
+331 5343 9442
Philip Dennis / Joanna Boon
Pelham Bell Pottinger
Media & Investor Relations
+44(0)207 861 3232
Brisco Capital Partners Corp.