CALGARY, April 1, 2013 /CNW/ - Sea Dragon Energy Inc.
("Sea Dragon" or the "Company") (TSXV: SDX) is pleased to announce
the following operational update for its recent work activities in
Egypt.
The company's net production in Egypt averaged 1,526 bopd in the month of
January 2013 and has now reached
1,840 boepd (1,720 bopd and 120 boepd in gas and NGL's). In NW
Gemsa, oil production is averaging 9,900 bopd gross (990 bopd net),
while gas and NGL's are adding another 1,200 boepd gross (120 boepd
net). In Kom Ombo, production is averaging 500 bopd gross (250 bopd
net); while in Shukhier Marine the company is producing 480
bopd.
Over the past two months, Sea Dragon has also
been able to collect a significant percentage of its aging
receivables thus enabling it to reduce the receivables amount to
$4.63MM and the age of its
receivables to two months based on current production.
NW GEMSA CONCESSION:
Current production from the Al Amir SE and Geyad
fields is approximately 9,900 bopd gross (990 bopd net).
Total production, including solution gas and natural gas liquids,
is approximately 11,100 boepd gross (1,110 boepd net). The
concession has eight current oil producers at Al Amir SE field, two
at Al Ola and five at Geyad. Cumulative production from the
NW Gemsa Concession has now exceeded 10.6 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 17,800
bwpd. Cumulative injection to date is 6.9 million barrels at
Al Amir SE and 1.7 million barrels at Geyad.
Al Amir SE-16 Well:
This well is now being completed as a Shagar water injector. The
well was spud on February 28, 2013
and successfully drilled to its total depth of 11,000 feet in the
Upper Rudeis Formation. It encountered 27 feet of good quality wet
sand in the shagar member of the Karim Formation in the interval
10,807.5 to 10,834.5 feet. This well will add another water
injection point in the field, which will improve sweep efficiency
and maximize oil recovery.
Future Plans:
Beyond the completion of Al Amir SE-16, future plans at NW Gemsa
include the drilling of two additional water injectors, one
producer and one exploration well in 2013.
The NW Gemsa concession is located onshore on
the west side of the Gulf of Suez, approximately 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. Sea
Dragon has a 10% working interest in the NW Gemsa Concession with
Vegas oil and gas at 50%, as operator and Circle Oil PLC with
40%.
SHUKHEIR MARINE CONCESSION:
The Shukheir Marine Concession contains both the
Shukheir Bay and Gamma development leases.
Current production from the concession is 480
bopd. Sea Dragon is the sole owner and operator of the
concession.
Shukheir Bay #5 Well Work-over:
Following the successful completion of work-over operations on this
well, it has now recovered its kill fluid and restored its pre
work-over production of 380 bopd. The SHB-5 well produces from the
Upper and Lower Rudeis sands within the Shukheir Bay field.
The well began production in 2006 and has produced over 1.1 MMbbl
of oil to date.
Future Plans:
The company continues to plan an acid stimulation treatment in the
Gamma #1 well which may add 100 bopd.
Exploratory drilling opportunities also exist in
the Gamma lease, prospecting the prolific Nubia Formation and in
the Shukheir Bay lease in the Upper and Lower Rudeis
Formations. The Company is currently re-mapping its 3-D
seismic coverage in the area to evaluate these opportunities.
The Shukheir Marine Concession is located in the
shallow offshore waters of the Gulf of Suez approximately 300 km
southeast of Cairo. Following the
acquisition of 100% interest in the concession which contains both
the Shukheir Bay and Gamma oil fields, Sea Dragon began a
comprehensive review of the upside potential believed to still
exist in both fields.
KOM OMBO CONCESSION:
Current production from the Al Baraka field is
approximately 500 gross (250 net) bopd.
Future Plans:
Plans are to monitor production from West Al Baraka-2 and then if
warranted commence an appraisal/development drilling program which
could involve the drilling of up to three new wells.
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 and the newly discovered W. Al Baraka oilfields, producing light oil from
multiple reservoirs. Sea Dragon owns 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.