SDX ENERGY INC SDRYF

Future upside at NW Gemsa - partner outlook

[CalifDreaming]

A bit dated, but I've never seen a specific number being applied to NW Gemsa water flood before. 


17/09/2010
Operational Update, 3rd Quarter 2010

North West Gemsa
Vegas Oil & Gas operates the NW Gemsa concession located in the Gulf of Suez basin in the Eastern Desert of Egypt. The company discovered the Al Amir SE and Geyad oilfields and the Al Amir 18o API heavy oil discovery. Production from the two fields is holding steady at 9,000bopd but is expected to rise to 15,000bopd in 2011 under a planned waterflood.
 


Al Amir-1 heavy-oil discovery well was re-entered, completed and tested at 300bopd from the South Gharib Formation at a depth of 4,750ft. Geological interpretation of this formation is ongoing in view of the heavy oil shows seen in the Al Amir SE-6 well three kilometres distance from Al Amir-1. The Al Ola-1 exploration well spud on July 15th and reached TD at 14,323ft in the Nukhul Formation. This well is situated outside the southern boundary of the Al Amir SE Development Lease and was intended to test an undrilled structural compartment that might prove to be an extension of the Al Amir SE oil field. The primary objectives of the Rahmi and Shagar Kareem sandstones currently producing in the Amir SE oil field were found to be oil-bearing in Al Ola-1, and, as prognosed, the reservoirs are not in free communication with the main field updip. The well will be put on production in 4Q, and further appraisal drilling will take place. A secondary objective in Al-Ola-1 was the appraisal of a new play in the Lower Rudeis Formation which was tested in Al Amir SE-6 well and flowed gas and condensates. In Al Ola-1, high gas readings were encountered and logged while drilling through several sandstone intervals between 13,400ft and 13,670ft, and a programme of testing is being considered.


Vegas as operator has working interest in the NW Gemsa Concession of 50% with Circle Oil at 40% and Sea Dragon Energy at 10%.