Al Ola X-1 Exploratory wellSea Dragon Provides an Operational Update on Egypt
CALGARY, Nov. 22 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon") (TSX Venture: SDX) is pleased to provide the following update on its Operations in Egypt.
NW Gemsa Concession
Al Ola X-1 Exploratory Well
The Al Ola X-1 well was drilled to its total depth of 14,323 feet in the Nukhul Formation. Open hole logs were run and the well was cased to total depth. The shallower Kareem oil producing formation encountered 25 ft of oil pay. The Rahmi member of the Kareem Formation was perforated in the interval 9,780-9,800 feet and placed on test. Preliminary results show a rate of 1,600 bopd on a 32/64" choke. The Lower Rudeis Formation, where strong gas shows were experienced, could not be adequately tested due to mechanical difficulties.
The drilling rig will now be mobilized to drill the Al Amir SE (number sign)7 well which is expected to delineate the outer limits of the Al Amir SE field. The well is anticipated to be completed as a water injection well in preparation for commencing water injection in the field. Water flooding of the Al Amir field is expected to provide significant reserve and production additions in 2011.
Sea Dragon has a 10% working in the NW Gemsa Concession with Vegas Oil at 50% as operator and Circle Oil Plc with 40%.
Kom Ombo Concession
Al Baraka (number sign)12 Well
The well was spud on November 4th and drilled to its total depth of 4,910 feet in the Six Hills Formation. Open hole logs were run and analyzed. The primary objective being the Six Hills "E" Formation was successfully encountered with 20 feet of oil pay. Casing was run and the drilling rig was released on November 14th. The well will be completed shortly using the work over rig.
Al Baraka SE Well
This step out well was spud on September 15 and drilled to its total depth of 8,750 feet in the Kom Ombo Formation. Petrophysical analysis of the open hole logs indicates 46 feet of potential oil pay in the Kom Ombo "A" and "C" Formations. The Kom Ombo "A" Formation was perforated in the intervals 8,499-8,511 feet and 8,448-8,456 feet and the well will be placed on production shortly. The testing of oil in the Kom Ombo sands is very encouraging as it could potentially result in additional development drilling and production from this southeastern extension of the Al Baraka Field.
Al Baraka (number sign)9 Well
The Abu Ballas and Sabaya Formations show 50 feet of potential oil pay. The well will now be recompleted in these formations as the Six Hills "E" sands showed non-commercial quantities of oil.
Al Baraka (number sign)6 Well
Recompletion operations were carried out in this well in the Six Hills "E" sands and the well was returned to production.
Remaining in the 2010 work program is the drilling and completion of up to two development wells and one exploration well, and the recompletion and fracturing of up to three wells.
Sea Dragon has a 50% working interest and is a joint operator of the Kom Ombo Concession with Dana Gas Egypt owning the remaining 50%.
Commenting on the latest developments on the Company's operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated "Our Company is now engaged in a very active development drilling program in both the Kom Ombo and NW Gemsa concessions. Our aim is to ramp up production quickly in order to meet our exit target of 2,000 barrels per day."
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.