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CALGARY, Aug. 27, 2012 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSXV: 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 9,100 bopd gross (910 bopd net to Sea Dragon). Cumulative production from the NW Gemsa Concession has now exceeded 8.9 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 injection rates are approximately 18,000 barrels per day at Al Amir SE and 3,800 barrels per day at Geyad. Cumulative injection to date is 4.4 million barrels at Al Amir SE and 1.0 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%.
Al Ola-3 Well:
This injection well, located in the southern part of Al Amir SE field, on the Al Ola development lease, was spud on July 16, 2012. The well is situated approximately 870 meters south of the Al Ola 1x well and 1,445 meters south east of Al Ola-2 well. The primary objective of this well is to provide injection support to the Kareem sands in Al Ola area. The well was drilled to total depth of 10,550 feet and both Shagar and Rahmi sands were cored and 22 feet of Shagar and 20 feet of Rahmi good quality sands were encountered. The future plan is to run casing and dually complete the well as a water injector.
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 550 bopd gross (275 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%.
West Al Baraka-2 Well:
The Abu Ballas Formation in this well was successfully fraced. During clean up the well tested 170 bopd. The well is currently shut in pending the declaration of commerciality and preparation of a Development Lease application before being placed on production.
Al Baraka-17 Well:
This step out well to AB-16 well was spud on July 28, 2012. AB-17 is located approximately 650 m to the south of AB-16 and was successfully drilled to a total depth of 7,527 m in the basement and logged. Oil shows were encountered in the Six Hills D and Kom Ombo C & A sands. Petrophysical analysis indicate the intervals are water bearing and the well was abandoned.
Total working interest production for the company is now averaging 1,185 bopd. The company is continuing its efforts in search of new growth opportunities with emphasis on Egypt and Sub-Saharan Africa.
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 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 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 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 Company 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 Company 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 Company. 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.
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SOURCE: Sea Dragon Energy Inc.