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CALGARY, Dec. 20 /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 Amir SE No. 7 Well
The Al Amir SE No. 7 well was spud on November 27th and is currently drilling below 8,500 feet towards a targeted total depth of 16,750 feet. The primary target for this well is the Kareem Formation and the secondary target is the Lower Rudeis Formation where gas and condensates were tested in the adjacent Al Amir SE No. 6 well. The well is expected to delineate the western limits of the Al Amir SE field and 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.
The Al Ola X-1 well was placed on production at 1400 bopd from the Kareem Rahmi Formation. Although the Al Amir SE and Geyad fields are capable of producing at significantly higher rates, total production is still restricted to 8500-9000 bopd in order to minimize gas flaring, pending the implementation of gas conservation and water flooding operations.
Cumulative production from the concession has now exceeded 4 mmbbls. of 42 degree API crude oil.
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 No. 13 Well
The well was spud on December 12th and is currently drilling below 4,200 feet towards its targeted depth of 5,000 feet in the Six Hill "E" Formation. The well is expected to be completed and if successful placed on production prior to year end.
Al Baraka No. 11 Well
The well was spud on November, 22nd and drilled to its total depth of 5,299 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. Casing was run and the drilling rig was released on December 6th. The well is currently being completed in the Six Hills "E" sands and will be placed on production prior to year end.
Al Baraka No. 12 Well
The well was completed in the Six Hills "E" Formation in the interval 4,522-4,530 feet and placed on production at 190 bopd.
Al Baraka SE Well
This step out well was 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 Formations. The Kom Ombo sands were completed with 34 feet of perforations and clean oil recovered at surface. The well will be placed on production shortly. The recovery of oil from 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.
Remaining in the work program prior to year end is the placement of the Al Baraka No. 5, No. 11 and Al Baraka SE on production, the frac. treatments of two development wells and the spud of the Memphis exploratory well.
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 "All efforts are now being deployed to maximize production from the Al Baraka field in order that we may achieve our target rate of 2000 bopd by the end of December or shortly thereafter. The spud of the Memphis prospect marks the beginning of our endeavours to test the vast upside potential of the Kom Ombo Block. I am very pleased by the progress our company made during 2010 in both of our concessions in Egypt and look forward to continued growth in our production, reserves and cash flow both in Kom Ombo and NW Gemsa".
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.
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For further information: Said Arrata, Chairman & CEO, (403) 457-5035; A.D. (Tony) Anton, President & COO, (403) 457-5035; Scott Koyich, President, Brisco Capital Partners, (403) 262-9888, [email protected]; Graeme Dick, Brisco Capital Partners, (403) 561-8989, [email protected]
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