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CALGARY, Sept. 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
The Al Ola X-1 well spud on July 15th has now reached its total depth at 14,323 feet in the Nukhul Formation. The newly drilled section in the Rudeis Formation was logged and the well will now be cased to total depth. The Lower Rudeis Formation, where strong gas shows were encountered, is now being analyzed with the view of being tested prior to completing the well in the Kareem Formation. The Shagar and Rahmi members of the Kareem Formation were successfully encountered with 6 ft and 19 ft of oil pay respectively. No oil water contact was seen in this well and once tested and placed on production, it will result in extending the Al Amir SE development lease to the south of the existing boundary with the potential of significantly increasing the field reserves.
Production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is holding steady at 9000-9500 bopd. Water flooding operations are now planned for the Al Amir SE and Geyad fields to provide pressure support and significant production increases. Cumulative production from the concession has now reached 3.3 million barrels of 41 degree API oil.
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%.
Kom Ombo Concession
The Al Baraka SE step out well was spud on September 15th. The well is located some 4 km southwest of the Al Baraka No.9 well and is intended to delineate the edge of the Al Baraka field. The well is scheduled to reach a total depth of approximately 8500 ft and will test all sands including the Kom Ombo Formation. Additional development wells and possibly an exploration well will be drilled following the completion of this step out well.
The completion/work-over rig, ECDC Rig 5 will soon commence completion operations on the Al Barak No.9 well following its inspection and acceptance by the operator.
The Al Baraka field is now producing some 600-700 bopd gross. With the imminent arrival of the completion/work-over rig, production rates should soon begin to rise towards an expected year end exit target of some 2000 bopd.
Sea Dragon has a 50% working interest in Jointly Operated Kom Ombo Block with Dana Gas Egypt owning the remaining 50%.
Sea Dragon also announces the resignation of Mr. David Thompson as Director and Officer of the corporation for personal reasons. The company and staff wish to thank David for his significant contributions to our success over the past few years.
Commenting on these latest developments on our operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated "We are quite encouraged by the continued success of the development drilling campaign in NW Gemsa and the anticipated rise in production and reserves from the planned waterflooding operations. The commencement of our completion and work over program in Al Baraka field should also result in a gradual increase in field oil production towards year end. I would also like to thank David on behalf of the Board of Directors for his guidance and wise counsel and wish him the best in his future endeavors".
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, 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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