CALGARY, Nov. 5, 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 9,000 bopd gross (900 bopd net to Sea
Dragon). Currently producing wells include seven Al Amir SE wells,
two Al Ola wells and three Geyad wells. Cumulative production
from the NW Gemsa Concession has now exceeded 9.58 million barrels
of 42 degree API Crude oil.
Water injection is ongoing with three injectors
currently operating at Al Amir SE Field and two injectors at Geyad
Field. Current total injection rates are approximately 14,700
barrels per day. Cumulative injection to date is 5.54 million
barrels at Al Amir SE and 1.14 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 Shagar oil producer was initially tested at 1600 bopd on a
24/64" choke. The well is now tied-in and producing at a
stable rate of 906 bopd on 18/64" choke.
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 has
now reached a depth of 9,888 feet and began coring the Kareem
Formation. Plans are to drill the well to its projected total
depth of 10,100 feet and produce the Kareem Shagar and Rahmi
sands.
Al Amir SE-7 Injector Work Over:
Operations were recently conducted to reperforate and recomplete
this well as a single zone Rahmi water injector. The well was
previously a commingled Shagar / Rahmi injector, however
differences in reservoir quality resulted in most of the water
being directed to the Shagar. The workover will result in
increased water injection into the Rahmi zone, where additional
volumes are needed to maintain reservoir pressure, optimize
production and maximize oil recovery.
Al Ola-3 Well:
Operations are underway to dually complete this injection well in
the Rahmi and Shagar sands. The well has been successfully
perforated in the intervals: 10,232-10,252 feet and 10,164-10,182
feet. Plans are to run a final completion string and
commence water injection.
Geyad-2ST Well:
Plans are to recomplete this well in the Rahmi zone. This
former Shagar producer experienced water problems due to an
underlying aquifer and was shut-in late 2011. The Rahmi is to
be perforated and tested in the interval 6,565-6,595 feet.
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.
Current production from the Al Baraka field is
averaging approximately 530 bopd gross (265 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.