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CALGARY, July 27 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon") (TSX Venture: SDX) is pleased to provide the following update on its Kom Ombo Operations in Egypt.
The Al Baraka No. 5 well has now been completed in the Six Hills "E" Formation in the interval 4352-4391 (39 feet). The well was put on test and is now producing at 300 bopd. The current rate is restricted by the capacity of the surface facilities. Additional well site storage facilities will now be installed to allow the well to produce at higher rates. The productivity of the Six Hills "E" Formation in this well appears to be sufficiently high so as not to require an immediate fracturing treatment.
In order to maximize field production and expedite the progress of the development program, a completion/work-over rig will be contracted and is expected to be mobilized along with the fracturing units to the Al Baraka field by Mid-August. The Al Baraka No. 6 well is scheduled as the first well in the fracturing campaign.
The Al Baraka No. 7 well was spud on July 21st and has now reached a depth of 3640 feet, a 9 5/8" casing string was run and the well is now drilling towards its target depth of 5200 feet in the six Hills Formation. Oil staining was observed in both the Abu Ballas and Six Hills Formation.
With the placement of the Al Baraka No. 5 well on stream, the Al Baraka field is now producing at a rate of 850 bopd gross.
The 418 km 2D Seismic programme in the Kom Ombo Block to delineate and firm up eight prospects and leads was completed on July 15th. Processing has already commenced with the view of potentially drilling an exploratory well before year-end. Acquisition has also started on an additional 75 km seismic program in the unexplored NW Basin.
Sea Dragon has a 50% working interest in Jointly Operated Kom Ombo Block with Dana Gas Egypt owning the remaining 50%.
Commenting on the progress made to date on the Kom Ombo operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated, "I am pleased to see the Al Baraka No. 5 well intersecting the Six Hills "E" sands as these appear to be of good quality and high productivity. I am also confident that with the deployment of a second rig in Kom Ombo our efforts to accelerate the drilling program will result in a faster ramping up of production.
As I have stated previously our short term focus will continue to be on organic growth with the view of maximizing production and cash flow from our existing assets. I am also looking forward to the results of our seismic acquisition program which should help us explore the vast potential of the undrilled acreage in Kom Ombo."
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; Tony Anton, President & COO, (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