NewsSea Dragon Provides an Operational Update on Egypt
CALGARY, Aug. 10, 2010 (Canada NewsWire via COMTEX News Network) --
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Sea Dragon Energy Inc. ("Sea Dragon") (TSX Venture: SDX) is pleased to provide the following update on its operations in Egypt.
Kom Ombo Concession
The Al Baraka No. 7 well drilled, logged, cased and completed in 12 days showing a significant improvement in rig performance. Log analysis showed a net pay thickness in the Abu Ballas Formation of 28 feet. The well was perforated in the Abu Ballas interval 3634-3662 feet and is now undergoing testing operations. Testing results should be made available shortly. This well appears to be a candidate for a fracture treatment. The drilling rig will now move to drill the Al Baraka No. 9 well, expected to spud this week.
Of the seven wells drilled in the Al Baraka field to date, four have been selected for fracturing treatments. Once these stimulation operations are completed and Al Baraka No. 9 and No. 11 are drilled, production is expected to reach 2000 bopd, over two fold increase from current levels.
A completion/work-over rig has now been selected. Contract negotiations are currently underway and the rig is expected to be mobilized along with the fracturing units to the Al Baraka field by the end of August.
The 477 km 2D seismic programme to delineate and firm up eight prospects and leads was completed on July 23rd. Processing has already commenced with the view of potentially drilling an exploratory well before year-end.
Sea Dragon has a 50% working interest in Jointly Operated Kom Ombo Block with Dana Gas Egypt owning the remaining 50%.
NW Gemsa Concession
The original heavy oil discovery well, the Al Amir-1X was re-entered, completed and tested at 300 bopd. The well is producing from the South Gharib Formation at a depth of 4750 feet. Produced oil is relatively heavy 18 degree API. Geological interpretation of this field is ongoing in view of the heavy oil shows seen in the Al Amir SE No. 6 well some three kilometers distance from the Al Amir-1X.
The Al Ola X-1 well spudded on July 15th and is currently drilling at 8000 feet. This well is expected to reach a depth of 13,700 feet. This well is being drilled as an exploratory well outside the southern boundary of the Al Amir SE development lease. It is intended to capture a southern extension to the Al Amir SE oil field. The primary objectives are the Rahmi and Shagar Kareem sands currently producing in the Amir SE oil field. The well will also test a secondary objective in the Lower Rudeis Formation where gas and condensates were tested in the Al Amir SE No. 6 well. Should the Lower Rudeis Formation be productive, consideration will then be given to deepen the well to 15,000 feet to test the Nubia Formation.
Production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is holding steady at 9500 bopd.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas Oil at 50% as operator and Circle Oil Plc. with 40%.
Commenting on these latest developments on our operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated, "I am encouraged by the way drilling operations are being accelerated. The pace of our development activities should be further enhanced by the deployment of the service rig. I am also confident that once stimulation work is completed on Al Baraka wells, significant production increases will materialize."
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.
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.
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%SEDAR: 00026905E
SOURCE: Sea Dragon Energy Inc.
Said Arrata, CEO and Chairman, (403) 457-5035; Tony Anton, President and COO, (403)
457-5035; Scott Koyich, President, Brisco Capital Partners, (403) 262-9888,
skoyich@briscocapital.com; Graeme Dick, Brisco Capital Partners, (403) 561-8989,
graeme@briscocapital.com
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