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CALGARY, July 7 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon") (TSX Venture: SDX) is pleased to provide the following update on its Operations in Egypt.
Kom Ombo Block 2:
The Al Baraka No. 5 well has now reached its final depth of 5,200 ft in the Six Hills Formation. The main target of the well being the Six Hills "E" sands, previously encountered in the Al Baraka 4 well were successfully penetrated. Two cores were cut totaling 97 ft. The Six Hills "E" formation encountered up to 75 ft gross sands with Oil saturations. The well was logged and cased and will soon be perforated and tested. Test results are expected shortly. Once the well is completed and tested, the rig will move to the third well in our ten development well program in the Al Baraka field. Al Baraka 6 has now completed its initial testing and the results of the coring operation are being interpreted. Fracturing stimulation equipment is being moved to the site to commence fracturing operations to optimize production.
The 400 km 2D Seismic programme in the Kom Ombo Block commenced on June 16th. To date some 280 km have been acquired for a 70% programme completion. The results of this new seismic survey will be used to further delineate previously identified leads and prospects with the view of drilling an exploratory well outside of Al Baraka development lease before year-end.
Sea Dagon has a 50% working interest in Kom Ombo with Dana Gas Egypt owning the remaining 50% and Jointly Operated.
The Al Amir SE No. 6 well after having reached a total depth of 13,900 ft was successfully logged and cased to a depth of 13,895 ft. The lower Rudeis formation was perforated in the interval 13,758 ft to 13,794 ft and tested. The well produced gas at rates of 1.1 mmscf/d to 1.6 mmscf/d along with condensate at rates reaching a maximum of 150 bcpd. The well was shut in for a pressure build up and then plugged back to a depth of 10,520 ft. The well is currently being completed in the Kareem Shagar formation in the interval 9,805 ft to 9,835 ft. A flow test will follow in the coming few days before the well is shut in for a pressure build up and then placed on production. While the lower Rudeis formation will not produce at this time the results of the perforation and testing do indicate future potential. The drilling rig will next move to the Al Ola No. 1 exploratory well location.
The company's working interest share of production from the Al Amir SE and Geyad fields in the NW Gemsa concession and the Al Baraka field in the Kom Ombo concession is running steady at 1,200 bopd with an expected 2010 target exit of 3,000 bopd.
Commenting on the progress made to date on our operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated, "I am quite delighted with the progress of our drilling program. We are on schedule and on budget with our development plans to accelerate production. The company will continue its focus short term on organic growth in Kom Ombo and NW Gemsa with the view of maximizing production and cash flow. I am also looking forward to exploring the vast potential of the undrilled acreage in Kom Ombo."
Sea Dragon has a 10% working interest in NW Gemsa with Vegas Oil at 50% (operator) and Circle Oil Plc with 40%.
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. 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 exploration of the Kom Ombo Concession 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 Corporation 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 Corporation 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 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.
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 Corporation. 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.
For further information: For further information: Said Arrata, CEO and Chairman, (403) 457-5035; David Thompson, Senior Vice President and Director, (403) 457-5035; Scott Koyich, President, Brisco Capital Partners, (403) 262-9888, firstname.lastname@example.org; Graeme Dick, Brisco Capital Partners, (403) 561-8989, email@example.com