CALGARY, March 7, 2013 /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
activities in Egypt.
The Al Amir SE-14 ST2 well was completed in the
Rahmi sands and tested at 3,486 bopd. The well is now on production
at 1,333 bopd resulting in total gross oil production from the NW
Gemsa Concession increasing to 9,600 bopd and 11,420 boepd
including solution gas and natural gas liquids.
NW GEMSA CONCESSION
The NW Gemsa concession is located onshore on the west side of the
Gulf of Suez, approximately 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. Sea Dragon has a 10%
working interest in the NW Gemsa Concession with Vegas at 50%, as
operator and Circle Oil PLC with 40%.
Current production from the Al Amir SE and Geyad
fields is approximately 9,600 bopd gross (960 bopd net).
Total production, including solution gas and natural gas liquids,
is approximately 11,420 boepd gross (1,142 boepd net). The
concession has eight current oil producers at Al Amir SE field, two
at Al Ola and five at Geyad. Cumulative production from the
NW Gemsa Concession has now exceeded 10.6 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 18,000
bwpd. Cumulative injection to date is 6.9 million barrels at
Al Amir SE and 1.7 million barrels at Geyad.
Al Amir SE-14 ST2 Well:
This development well has now been completed in the Rahmi sands and
placed on production at 1,333bopd using a 28/64" choke. The well
was spud on November 26th
and is located in the southern part of the Al Amir SE field, 738
meters NW of the AASE-12 ST surface location. The well
objective was to appraise the Shagar and Rahmi sands for
production. The AASE-14ST2 well was successfully drilled to a
total depth of 10,000 feet and encountered 16 feet of net pay in
the Kareem Shagar sand and 13 feet of net pay in the Kareem Rahmi
sand. The Rahmi sand was perforated in the interval 9680-9695
ft MD and flowed at 3,486 bopd and 3.18 mmscfpd of gas at 764 psi
WHFP, on a 48/64" choke.
Geyad-4 ST2:
Geyad-4 ST2 was drilled as an infill well in November 2011. The well encountered thin
and tight Rahmi sand. Initial production was 300 bopd with a
high oil rate decline but with no increase in water cut and was
eventually shut-in January, 2013.
In order to restore and enhance well
productivity a fracture stimulation was conducted. The
stimulation was successfully completed and as of February 22, 2013 the well has been placed back
on production at 750 bopd at 750 psi WHFP and 24/64" choke.
Al Amir SE-16 Well:
The AASE-16 well was spud February 28,
2013 and is a planned water injection well targeting the
Kareem Shagar and Rahmi sands. The purpose of this well is to
add another water injection point in the field, which will improve
sweep efficiency and maximize oil recovery. The well is
located approximately 860 m NW of the AASE-6 surface location and
310 m SW of the AASE-10 surface location. The well is
currently drilling below 2,500 feet and is projected to reach a
total depth of 10,800 feet in the Upper Rudeis Formation.
Future Plans:
Beyond the drilling of Al Amir SE-16, future plans at NW Gemsa
include the drilling of two additional water injectors and one
producer in 2013.
SHUKHEIR MARINE CONCESSION:
The Shukheir Marine Concession is located in the shallow offshore
waters of the Gulf of Suez approximately 300 km southeast of
Cairo. Following the acquisition
of 100% interest in the concession which contains both the Shukheir
Bay and Gamma oil fields, Sea Dragon began a comprehensive review
of the upside potential believed to still exist in both fields.
Shukheir Bay #5 Well Work-over:
The SHB-5 well produces from the Upper and Lower Rudeis sands
within the Shukheir Bay Field. The well began production in
2006 and has produced over 1.1 MMbbl of oil to date. The well
operates under a jet pump artificial lift system and recently
averaged over 380 bopd. A work-over was successfully
completed to replace a corroded tubing string and the well is now
back on production cleaning up kill fluid.
Future Plans:
The company continues to plan an acid stimulation treatment in the
Gamma #1 well which may add 100 bopd.
Exploratory drilling opportunities may also
exist in the Gamma concession, prospecting the prolific Nubia
Formation and in the Shukheir Bay field in the Upper and Lower
Rudeis Formations.
Current production from the concession is 260
bopd. Once work-over fluids are recovered from the SHB#5 well,
production from the Concession is expected to be restored to its
pre work-over levels of some 500 bopd. Sea Dragon is the sole owner
and operator of the concession.
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
and the newly discovered W. Al
Baraka oilfields, producing light oil from multiple
reservoirs. Sea Dragon owns a 50% working interest and is a
joint operator of the Kom Ombo Concession with Dana Gas owning the
remaining 50%.
West Al Baraka #2 Well:
The West Al Baraka development lease has now been approved by the
Egyptian Government. The lease covers an area of 184
km2 and was granted based on the Abu Ballas discovery
from the West Al Baraka-2 well. A bottom hole pump change
(rod pump) was recently conducted. The well is now
producing and continues to clean-up.
The well was completed in December 2012 and placed on an extended
production test. Test rates averaged 120 to 250 bopd.
Future Plans:
Plans are to monitor production from West Al Baraka-2 and then
commence an appraisal/development drilling program which could
involve the drilling of up to three new wells.
Current production from the Al Baraka field is
approximately 500 gross (250 net) bopd.
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.