Al Amir SE #18 Development Well & Shehab-2 Exploration Well
CALGARY, Aug. 8, 2013 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or
the "Company") (TSX VENTURE: SDX), an oil & gas exploration and
production company with assets in Egypt, is pleased to announce the Al
Amir SE 18 development well has encountered significant oil bearing
reservoir section in the Kareem formation and will be completed as a
producer. The Shehab-2 exploration well successfully reached TD,
encountering potential gas bearing sands in the Rudeis formation and
water wet intervals in the Kareem horizon. Subsequent production tests
failed to flow to surface and the well will be temporarily abandoned
pending further evaluation.
Al Amir SE-18 Well:
Al Amir SE-18 (AASE-18) was drilled to a depth of 10,400 feet where both
the Shagar and Rahmi oil reservoirs were encountered. Log analysis
indicates 34 feet of net Shagar oil pay and 32 feet of net Rahmi oil
pay. The well was originally drilled as a proposed injector but the
structure was encountered 200 ft. high to the original prognosis with
the encountered intervals being also thicker and better quality than
the most recently AASE-17 well. The AASE-17 well flow tested 3,664
BOPD from a 12 net foot interval in the Shagar as reported on June 21,
2013. The AASE-18 will be completed in the Rahmi as a producer with
the well being tested prior to being put on production. The results of
this flow test will be reported in a future announcement.
Shehab- 2 Exploration Well
The Shehab-2 exploration well, located approximately 2 Kms north of the
Geyad field, was spud on June 19th, targeting the Kareem horizon. The well encountered 30 ft of
potentially gas bearing sands in the Upper Rudeis limestones and good
quality intervals in the Kareem horizon, which proved to be water
bearing. The Upper Rudeis limestone intervals were subsequently
fracture stimulated and tested but failed to flow. The well has been
temporarily abandoned while alternative stimulation and completion
options are investigated.
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 oil
and gas at 50%, as operator and Circle Oil PLC with 40%.
The company's net production in Egypt averaged 1,980 boepd during the
month of July 2013, with 1,307 boepd net from NW Gemsa, 222 bopd from
Kom Ombo and 451 bopd from Shukheir Marine.
Commenting, Paul Welch, CEO of Sea Dragon, said:
"The AASE18 well results were both surprising and very positive. We can
expect another strong producer in this part of the field as it extends
towards the south east. NW Gemsa is a great asset, continuing to grow
and expand and we are excited about its future potential. Initial
results from the Shehab-2 Exploration well were not as hoped but given
the thick hydrocarbon bearing interval encountered in the Rudeis
limestone potential remains. We will continue to review the completion
options with the operator to determine if value can be unlocked from
this horizon. I look forward to reporting on this well as well as
the results of the flow test in the AASE18 well in the future."
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.
