Al Amir SE-12 ST, Another Successful Oil Producer
July 24 2012 - 6:25AM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/ CALGARY, July 26, 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 9,500 bopd gross (950
bopd net to Sea Dragon). Cumulative production from the NW Gemsa
Concession has now exceeded 8.2 million barrels of 42 degree API
Crude oil. 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-12 ST Well: This development well, located in the
south eastern area of the Al Amir SE field was spud on April 24,
2012. The objective of the well was to appraise the Kareem Shagar
and Rahmi sands. The well reached a total depth of 10,200
feet and was subsequently sidetracked to the northeast as the
Kareem sands were faulted out. The sidetrack was successfully
drilled to a final total depth of 10,315 feet, encountering 15.5
feet of oil pay in the Shagar sand. The well was perforated in the
interval 9,669 to 9,684.5 feet and flowed oil and gas on test at an
average rate of 2,595 bopd and 4.7mmscf/d respectively, on a 48/64"
choke. The well has now been placed on production at an initial
flow rate of 1,038 bopd. The rig was released and moved to the
Ola-3 well location. 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, and is prognosed to be drilled
to a total depth of 10,320 feet into Upper Rudeis. The primary
objective of the well is to provide injection support to the Kareem
sands in Al Ola area of the field. The well is currently drilling
below 5,700 feet and is expected to reach its total depth by
mid-August. 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 590
bopd gross (295 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%. Al Baraka-11 well: This
well, located 330 meters south east of the Al Baraka-16 well, was
standing suspended in the Six Hills "E" Formation. The Six Hills
"F-1" zone was perforated in the interval 3,880-3,939 feet and
successfully fraced. The well is currently contributing an average
of 70 bopd to Al Baraka Field production. 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-16 Well: This well tested 530 bopd from the deeper Kom
Ombo "C" sands. Upon placing the well on production the daily oil
rates declined sharply. Reasons for the decline are being
investigated. Faris-1 well: This second exploratory commitment well
located 4.5 km south of Al Baraka oilfield, was spud on June 26,
2012 and drilled to a total depth of 6,785 feet in the
basement. The primary objective was the Kom Ombo sands in a
large fault block. The well encountered oil shows in both the Kom
Ombo C and A sands, however, it failed to produce oil on test and
was subsequently plugged and abandoned. The rig was released and is
currently being mobilized to the AB-17 location. Total working
interest production for the company is now averaging 1,245 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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