CALGARY, Nov. 30, 2012 /CNW/ - Sea Dragon Energy Inc.
("Sea Dragon" or the "Company") (TSX VENTURE: SDX) 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 9,555 bopd gross (955 bopd net to Sea
Dragon). Currently producing wells include eight at Al Amir
SE field, two at Al Ola and four at Geyad. Cumulative
production from the NW Gemsa Concession has now exceeded 9.82
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 total injection rates are approximately 18,000
barrels per day. Cumulative injection to date is 5.87 million
barrels at Al Amir SE and 1.21 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 Amir SE-13 Well:
This well reached total drilling depth on
November 7 at 10,350 feet. Log
analysis indicates 20 feet of Shagar net pay with 12% porosity and
low water saturation. The Shagar zone was perforated from
9,895-9,908 feet. Initial testing resulted in an oil rate of
1,280 bbl/d on 26/64" choke. The well began production on
November 25 and is currently
producing 743 bopd on a 22/64" choke setting.
Al Amir SE-14 Well:
This development well was spud on November 26 with the objective of appraising the
Shagar and Rahmi reservoirs between the Al Ola-1x and AASE-12ST
wells. Planned total depth is 9,950 ft. The well is
currently drilling at 1,780 ft.
Al Ola-3 Completion:
This water injection well was dually completed
in the Rahmi and Shagar sands. The well was perforated in the
intervals: 10,232-10,252 feet and 10,164-10,182 feet. A final
completion string was successfully run. Water injection will
commence after start up of the associated water source wells.
Al Amir SE-7 Injector Work Over:
This well was successfully recompleted as a dual
zone injector in the Rahmi and Shagar intervals. Injection
resumed on November 4. Current
injection rates are approximately 1,200 bwpd in the Rahmi and 2,300
bwpd in the Shagar.
Geyad-1 Work Over:
In October 2012
this oil producer was re-completed in both the Rahmi and Shagar
sands. Both intervals were re-perforated and a new completion
string was run to allow commingled production. Cumulative oil
production to date from the well is 764,000 bbl. This well is
producing intermittently. Downhole plugging through sand fill
is under investigation.
Geyad-2ST Work Over:
Operations were conducted to recomplete this
well as a Rahmi zone producer. The Shagar interval, which
watered out in 2011, was successfully cement squeezed and the Rahmi
perforated in the interval 6,565-6,595 feet. Initial testing
resulted in 407 bbl/d of oil on a 2 inch choke. The well is
currently shut-in for a 2 day build-up period, after which the
service rig will be moved and the well placed back on
production.
Future Plans:
Beyond the drilling of Al Amir SE-14, future
plans at NW Gemsa include the drilling of 3 additional water
injectors and 1 producer, after which the rig is expected to be
farmed out.
The gas conservation project is moving along
well as sales gas and incremental liquids production are expected
to commence in February 2013.
The project is expected to add approximately 8.2 MMcf/d of gas
sales and additional associated liquids of 500 bbl/d. Total
gross production for 2013 is expected to average 10,000 boe/d
(1,000 boe/d net to Sea Dragon).
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 km².
Current production from the Al Baraka field is
averaging approximately 515 bopd gross (257 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%.
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 2012 drilling and capital expenditure
programs of the NW Gemsa and Kom Ombo Concessions and the results
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". All reserves information
contained herein as well as the net present value of such reserves
should be considered 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 development and political, social and other risks inherent in
carrying on business in Egypt. 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. Although Sea Dragon 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. Investors are cautioned that such forward-looking
statements involve risks and uncertainties. Actual results
may differ materially from those currently anticipated.
See Sea Dragon's Annual Information
Form for the year ended December 31,
2011 for a description of the risks and uncertainties
associated with the Company's business, including its exploration
activities. 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.
SOURCE Sea Dragon Energy Inc.