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CALGARY, March 22, 2012 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE: SDX) is pleased to provide the following operational update for its NW Gemsa and Kom Ombo concessions in Egypt.
NW GEMSA CONCESSION
This 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.
AASE-11 ST-1 Well:
This development well was spud on February 5th, 2012 to appraise the northwest extent of the field. The well was drilled to a total depth of 9,600 feet and then sidetracked to the southwest. The sidetrack was successfully drilled to a total depth 11,160 feet in the Upper Rudeis Formation. Petrophysical analysis indicates the well encountered 42 feet of oil pay in the Shagar reservoir and 22 feet in the Rahmi reservoir.
The well is being completed in the Shagar Reservoir in the interval 10,730 feet to 10,780 feet and should get support from the AASE-7 water injection well located 1.3 km to the south. It will be placed on stream soon and should contribute to ramping up concession production towards the 10,000 bopd target.
Following the well completion the rig will move to drill the AASE-12 infill development well, located in the southern part of the field approximately 820 m northeast of the producing Al Ola-1 well, and 850 m southwest of AASE-5 producing well.
The Al Ola development lease was approved by the government on February 19, 2012 allowing the two Al Ola wells to resume production at a combined rate of 1,800 bopd. Current production from the Al Amir SE and Geyad fields is approximately 8,340 bopd (834 bopd net to Sea Dragon). Cumulative production from the NW Gemsa Concession has now exceeded 7.5 million barrels of 42 degree API Crude oil.
The Al Amir SE-10 well has been completed in the Rahmi reservoir as the fourth water injection well in the NW Gemsa Concession. Water is currently being injected at a rate 1,230 barrels per day.
With the Al Amir SE-10 on line, water is being injected at a current rate of 21,000 bwpd. Cumulative injection to date has exceeded 2.0 million barrels.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas at 50%, as operator and Circle Oil PLC with 40%.
KOM OMBO CONCESSION
This 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.
The ECDC Rig-1 has now been contracted and is currently being mobilized to the Kom Ombo Concession to kick off the five well drilling program (three development and two exploratory wells). The first well to be drilled is the West Al Baraka-2 (WAB-2) exploratory well, located approximately 9 km southwest of Al Baraka field.
West Al Baraka structure is a large structure with an estimated oil in place of 75 mmbo in the shallow Abu Ballas target, which was found to be oil stained in previously drilled wells on the structure and is producing at Al Baraka Oilfield. Secondary target is in the Six Hills, also productive at Al Baraka. The next well, AB-16, will be drilled on the Al Baraka development lease to appraise the Kom Ombo sands 6 km NW of the ABSE-1 well Kom Ombo A sand producer, on a rotated fault upthrown from the Al Baraka field.
Current production from the Al Baraka field is averaging approximately 550 Bbl/d (275 Bbl/d 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%.
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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