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CALGARY, Sept. 13 /CNW/ - 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. 9 well was drilled to a total depth of 5,185 feet, logged and cased. Oil shows while drilling indicated oil pay in the Abu Ballas and Six Hills "F" Formations. The well is currently awaiting the arrival of the service rig to carry out completion and testing operations. The drilling rig will now move to drill the Al Baraka SE step out well, located some 4 km to the south towards the edge of the development lease.
Of the 8 wells drilled in the Al Baraka field to date, 4 have been selected for fracturing treatments. Once these stimulation operations are completed and Al Baraka SE and Al Baraka No. 11 are drilled, gross production from the field is expected to exceed 2,000 bopd, which will be over two fold increase from current levels.
The completion/workover rig has now been selected. Contract negotiations were completed and the rig is on the move to the Al Baraka field and is expected to be operational by the middle of September.
Seismic processing and interpretation of the recently acquired seismic program is currently underway 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 Al Ola X-1 well spud on July 15th and is currently drilling at 13,550 feet. The primary objectives for this well being the Shagar and Rahmi members of the Kareem Formation were successfully encountered with 6 feet and 19 feet of oil pay respectively. No oil water contact was seen in this well and once tested it will result in extending the Al Amir SE development lease to the south of the existing field boundary, with the potential of increasing the field's reserves. Casing was run and cemented over the Kareem Formation to a depth of 10,600 feet. Drilling then resumed to penetrate and evaluate the secondary objective in the Lower Rudeis Formation, where gas and condensate were tested in the Al Amir SE No. 6 well. Strong gas shows were encountered in the interval 13,400-13,500 feet. This well is expected to shortly reach a total depth of 13,700 feet.
Production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is holding steady at 9000 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 "Development drilling activities in both of our concessions in Egypt continue to yield successful results. The completion and placement of these new wells on production in Al Baraka and Al Amir SE fields should allow us to meet our 2010 year end targets".
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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%SEDAR: 00026905E
For further information: Said Arrata, CEO and Chairman, (403) 457-5035; 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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