Egypt Operational Update
25 August 2012 - 9:25PM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/ CALGARY, Aug. 27, 2012 /CNW/ -
Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") is pleased
to announce the following operational update for its recent work
program in Egypt. NW GEMSA CONCESSION The NW Gemsa concession is
located onshore on the west side of the Gulf of Suez, some 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. Current production from the Al
Amir SE and Geyad fields is approximately 9,100 bopd gross (910
bopd net to Sea Dragon). Cumulative production from the NW Gemsa
Concession has now exceeded 8.9 million barrels of 42 degree API
Crude oil. Water injection is ongoing with three injectors
currently operating at Al Amir SE Field and one injector at Geyad
Field. Current injection rates are approximately 18,000
barrels per day at Al Amir SE and 3,800 barrels per day at
Geyad. Cumulative injection to date is 4.4 million barrels at
Al Amir SE and 1.0 million barrels at Geyad. Sea Dragon has a 10%
working interest in the NW Gemsa Concession with Vegas at 50%, as
operator and Circle Oil PLC with 40%. Al Ola-3 Well: This injection
well, located in the southern part of Al Amir SE field, on the Al
Ola development lease, was spud on July 16, 2012. The well is
situated approximately 870 meters south of the Al Ola 1x well and
1,445 meters south east of Al Ola-2 well. The primary
objective of this well is to provide injection support to the
Kareem sands in Al Ola area. The well was drilled to total
depth of 10,550 feet and both Shagar and Rahmi sands were cored and
22 feet of Shagar and 20 feet of Rahmi good quality sands were
encountered. The future plan is to run casing and dually
complete the well as a water injector. KOM OMBO CONCESSION The Kom
Ombo Concession is located onshore in the southern part of Egypt
some 1,000 km south of Cairo. It contains the Al Baraka oilfield,
producing light oil from multiple reservoirs and an exploration
area of 11,400 kmĀ². Current production from the Al Baraka field is
averaging approximately 550 bopd gross (275 bopd net to Sea
Dragon). Sea Dragon has a 50% working interest and is a joint
operator of the Kom Ombo Concession with Dana Gas owning the
remaining 50%. West Al Baraka-2 Well: The Abu Ballas Formation in
this well was successfully fraced. During clean up the well tested
170 bopd. The well is currently shut in pending the declaration of
commerciality and preparation of a Development Lease application
before being placed on production. Al Baraka-17 Well: This step out
well to AB-16 well was spud on July 28, 2012. AB-17 is
located approximately 650 m to the south of AB-16 and was
successfully drilled to a total depth of 7,527 m in the basement
and logged. Oil shows were encountered in the Six Hills D and
Kom Ombo C & A sands. Petrophysical analysis indicate the
intervals are water bearing and the well was abandoned. Total
working interest production for the company is now averaging 1,185
bopd. The company is continuing its efforts in search of new growth
opportunities with emphasis on Egypt and Sub-Saharan Africa.
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 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 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 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 Company 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 Company 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 Company.
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. 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. Sea Dragon Energy Inc.
CONTACT: Said ArrataChairman, CEO and Director(403) 457-5035Tony
AntonPresident, COO and Director(403) 457-5035Olivier Serra Chief
Financial Officer and Director +331 5343-9442Brisco Capital
Partners Corp.Investor Relations(403) 262-9888
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