Jan. 10, 2011 (Canada NewsWire Group) --
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Jan. 10 /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
AI Amir SE #7 Well
The AI Amir SE #7 well was spud on November 27th. The well has reached the 9 5/8" casing point just below the Kareem Formation top. Preliminary petrophysical analysis of the logs run indicate 6 feet of oil pay in South Gharib Formation, extending the AI Amir South Gharib oil pool to the west. Casing was set at 9,650 feet and the well is now drilling below 10,960 feet towards the targeted depth of 16,750 feet.
The primary target for this well is the Kareem Formation and the secondary target is the Lower Rudeis Formation where gas and condensates were tested in the adjacent AI Amir SE #6 well and also encountered in the AI Ola X-l well. The well is expected to delineate the western limits of the AI Amir SE field and is anticipated to be completed as a water injector in preparation for commencing water injection in the field. Water flooding of the AI Amir field is expected to provide significant additions to reserves and production.
Production from the AI Amir SE and Geyad fields is currently running steady at around 8,500 bopd. Cumulative production from the concession has now reached 4.2mmbbls of 42 degree API crude oil.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas Oil at 50% as operator and Circle Oil Pic with 40%.
Kom Ombo Concession
AI Baraka #11 Well
The well was completed in the Six Hills "E" Formation and placed on production.
AI Baraka #3 and #7 Wells
These two wells have now been fraced and nitrogen lifted for clean up. Down-hole tubulars are being reinstalled in preparation for placing the wells back on production.
AI Baraka #5 Well
This well is currently being tied in and will be placed on production shortly.
AI Baraka SE-1 Well
This well is currently shut in with a parted rod string. It is scheduled for a work-over operation following which the well will be returned to production. The areal extent of the Kom Ombo sands is currently being evaluated with the view of identifying future development drilling locations.
Al Baraka #13 Well
The well was spud on December 12th and drilled to its total depth of 4,800 feet. The main target being the Abu Ballas Formation was successfully encountered but was found to be in pressure communication with the AI Baraka #1 well. Since the Abu Ballas reserves are already being adequately recovered from the AI Baraka #1, the well was plugged and abandoned.
The Memphis-1 exploratory well was spud on December 27, 2010 and drilled to its total depth of 5,200 feet in the basement. It is the first of a three exploratory well commitments to be drilled outside AI Baraka development lease. The well site is located some 28 km northwest of the AI Baraka field and was drilled to test a structure in the northern extension of the Kom Ombo basin.
Excellent reservoir quality rocks were encountered in the Abu Ballas and Six Hills Formations. However, no commercial hydrocarbons were observed and the well was plugged and abandoned.
Exploratory drilling will now move to the south into the general area of the AI Baraka field in closer proximity to the oil Kitchen where several prospects are already mapped.
Current gross production from the AI Baraka field is running at 900 bopd. With the placement of the newly fraced wells back on production along with AI Baraka #5 and AI Baraka SE-1 well, production should begin to rise significantly.
Sea Dragon has a 50% working interest and is a joint operator of the Kom Ombo Concession with Dana Gas Egypt owning the remaining 50%.
Commenting on the latest developments on the Company's operations in Egypt, Company Chairman and CEO, Mr. Said Arrata stated "Our activity level in Kom Ombo is at its peak with the ongoing fracture stimulation program and the completion and placement of new wells on production. Thus far eleven wells have been drilled in the AI Baraka field, ten of which have been completed as commercial oil producers for an exceptional success ratio of over 90%. We are continuing the drive towards maximizing production and cash flow from both our concessions in Egypt".
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.
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.
|Said Arrata||Tony Anton|
|Chairman, CEO and Director||President, COO and Director|
|(403) 457-5035||(403) 457-5035|
|Scott Koyich||Graeme Dick|
|President, Brisco Capital Partners||Brisco Capital Partners|
|(403) 262-9888||(403) 561-8989|