Sea Dragon Energy Inc. - Egypt Operational Update
CALGARY, Oct. 22, 2012 /CNW/ - Sea Dragon Energy Inc.
("Sea Dragon" or the "Company") (TSX VENTURE: SDX) is pleased to
announce the following operational update for its recent work
program in Egypt.
NW GEMSA CONCESSION
The NW Gemsa 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.
Current production from the Al Amir SE and Geyad
fields is approximately 8,400 bopd gross (840 bopd net to Sea
Dragon). Cumulative production from the NW Gemsa Concession has now
exceeded 9.42 million barrels of 42 degree API Crude oil.
Water injection is ongoing with three injectors
currently operating at Al Amir SE Field and one injector at Geyad
Field. Current total injection rates are approximately 16,400
barrels per day. Cumulative injection to date is 5.35 million
barrels at Al Amir SE and 1.09 million barrels at Geyad.
Sea Dragon has a 10% working interest in the NW
Gemsa Concession with Vegas at 50%, as operator and Circle Oil PLC
with 40%.
Geyad-6ST Well:
This development well was spud on September
10, 2012 with the objective of appraising the Kareem Shagar
and Rahmi sands. The well was drilled to its total depth of
6,200 feet, however, it was subsequently sidetracked as the Shagar
sands were found to be water bearing. The sidetrack was
successfully drilled to a final depth of 6,350 feet, encountering
seven feet of net pay in the Shagar sands. The well was completed
in the interval 5,996 to 6,006 feet and tested at 1600bopd on a
24/64" choke size. The well is currently awaiting tie-in as an oil
producer.
Geyad-1x Well Work Over:
Operations are currently underway to re-complete this oil producer
in both the Rahmi and Shagar sands. Both intervals will be
re-perforated and a new completion string will be run that will
allow commingled production to occur. Cumulative oil
production from this well to date is 764,000 bbl.
Al Amir SE-13 Well:
This development well was spud on October
14, 2012 with the objective of appraising the northern area
of the field between AASE#4 and AASE#11 wells. The well is
currently drilling below 2,900 feet. Plans are to produce this new
well from the Kareem Shagar and Rahmi sands.
KOM OMBO CONCESSION
The Kom Ombo 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.
2012 Development Drilling: Two new wells
were drilled, AB#16 and AB#17. The AB#16 was completed as a Kom
Ombo "A" producer and the AB#17 was dry and abandoned. As well, the
AB#11 well was recompleted in the Six Hills F-1 Formation after
having been suspended since March
2011.
2012 Exploration Drilling: Two wells were
drilled, West Al Baraka #2 well which resulted in a new
Abu Ballas oil Discovery and the
Faris well which was dry and abandoned.
A development lease application was submitted to
the Government for the West Al Baraka #2 discovery well and once
approved the well will be placed on an extended test to assist in
the preparation of a plan of development.
With the drilling of these two exploratory
wells, Sea Dragon has now fulfilled its work commitment for the
concession and will be surrendering the balance of the Kom Ombo
Block 2 Concession in January, 2013.
Current production from the Al Baraka field is
averaging approximately 535 bopd gross (267 bopd 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 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.