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CALGARY, Oct. 25 /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 was drilled to its total depth of 14,323 feet in the Nukhul Formation. Open hole logs were successfully run and the well was cased to total depth. The Lower Rudeis Formation where strong gas shows were experienced was perforated and is currently being tested. The same formation was found to be hydrocarbon bearing in the Al Amir SE # 6 well located some 4km away from the Al Ola X-1 well. The shallower Kareem oil producing Formation was successfully encountered with 25 ft of oil pay. Once testing operations in the Lower Rudeis Formation are finalized, the well will be completed in the Kareem Formation.
Production from the AL Amir, AL Amir SE and Geyad fields in the NW Gemsa Concession is holding steady at 9000-9500bopd. Water flooding operations are now planned for the Al Amir SE and Geyad fields to provide pressure support and significant production increases. Cummulative production from the concession has now reached 3.6million 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
AL Baraka SE Well: This step out well was spud on September 15th. The well is located some 4km southeast of the Al Baraka No.9 well and is intended to delineate the limit of the Al Baraka field and test the prospectivity of the deep Kom Ombo oil bearing Formation. The well was drilled to its total depth of 8750ft., open hole logs were run and the well was cased. Preliminary analysis of the logs indicate a gross oil pay section of 46 feet in the Kom Ombo "A" and "C" Formations. Completion and testing operations will follow in early November using the Completion Rig.
Al Baraka # 9 Well: The Six Hills "E" sands where minor oil saturations were observed was tested and non-commercial quantities of oil recovered. Additional potential exists in this well primarily in the shallower Abu Ballas and Sabaia Formations where Petrophysical analysis indicates some 50ft. of potential oil pay.
Al Baraka # 5 Well: Recompletion operations were carried out on this well to isolate a bottom set of perforations suspected of producing water. A bridge plug was installed and the well was returned to production.
Al Baraka # 6 Well: Recompletion operations will commence soon to isolate water production from the lower Six Hills "F-2" sands and recomplete the well in the Six Hills "F-1" sands.
The Al Baraka field is now producing some 600-700bopd gross. With the completion, work-overs and fracturing program now underway, production rates should soon begin to rise towards an expected year end exit target of some 2000bopd.
Sea Dragon has a 50% working interest in Jointly Operated Kom Ombo Block with Dana Gas Egypt owning the remaining 50%.
Commenting on these latest developments on our operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated "We are quite pleased with the preliminary results of the Al Baraka SE well. Once tested and the presence of oil in commercial quantities in the Kom Ombo sands is confirmed, additional development drilling will follow resulting in substantial increases in production. We are also encouraged by the continued success of the development drilling campaign in NW Gemsa and the anticipated rise in production and reserves as a result of the recently drilled Al Ola X-1 well and the planned water flood operations in the Al Amir SE and Geyad fields".
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; David Thompson, Senior Vice President and Director, (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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