CALGARY, ALBERTA--(Marketwire - March 25, 2010) -
NOT FOR DISTRIBUTION TO U.S NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
Sea Dragon Energy Inc. ("Sea Dragon") (TSX VENTURE:SDX) is pleased to provide an operational update on its activities in the NW Gemsa and Kom Ombo Concessions in Egypt.
The Al Amir SE#6 well was spud on March 14th, 2010. The well is designed to reach a total depth of 14,000 feet and bottom in the Nubia Formation. The primary objective is to further appraise the oil-bearing sandstones of the Miocene Kareem Formation and the secondary objective is to assess the hydrocarbon potential of the Pre-Miocene Nubia sandstones. At time of this press release the well had already reached a depth of approximately 3,000 feet.
Testing and Production Operations:
The Al Amir SE#5 well which tested 6150 bopd of 42 degree API oil from the upper Kareem pay was placed on production on March 22nd at a rate of approximately 1,500 bopd using a 24/64" choke. All seven producing wells are now choked back to minimize gas flaring and preparing for the installation and tie-in of permanent treating facilities flow lines and pipelines. Cumulative oil production from the Al Amir and Geyad oil fields has now surpassed 1.7MMbbls.
2010 Work Program and Budget:
NW Gemsa Concession: In the Al Amir SE field, two additional wells are planned, the Al Amir#7 appraisal well and one water injection well while in the Geyad field the Geyad#3 development well is scheduled to be drilled during the third quarter. Existing field facilities will be augmented with additional storage capacity, flow line, pipe lines and manifolds. Geological and engineering studies will be carried out in preparation for water flooding to commence early in 2011. Exploration activities include reprocessing of existing seismic and the potential drilling of an exploratory well. Total expenditures for 2010 are estimated at $46 million with Sea Dragon's 10% share being $4.6 million. As a result of the additional development drilling and facilities expansion total gross production from the concession is expected to exceed the 10,000 bopd level by year-end.
Kom Ombo Concession: In the Al Baraka field, ten new wells are planned including possibly one horizontal well towards the end of year. A new drilling rig is currently being selected for this year's drilling program, where we expect to spud our first well in mid-April 2010. Tubulars, wellheads and other drilling materials available in Sea Dragon and Dana Gas inventories will be utilized and new materials are being ordered. Surface facilities will be expanded to handle additional production expected to reach 3,000 bopd gross by year-end. Planned exploration activities outside the Al Baraka field include the acquisition of 300 Km(2) 3D and up to 300 km of 2D of new seismic and the drilling of an exploratory well. The total 2010 gross budget is estimated at $34 million with Sea Dragon's 50% share being $17 million.
Tanmia Petroleum Company: As a result of the recently executed alliance agreement between Sea Dragon Energy and Tanmia Petroleum Company, some 11 projects have now been identified as candidates for evaluation by the company. Preliminary screening work has already commenced on these new opportunities.
Mr. Said Arrata chairman and CEO of Sea Dragon said: "We are very pleased with the concerted effort being made to increase our production and cash flow from both the NW Gemsa and Kom Ombo concessions. We are also optimistic about the potential opportunities made available to us through the Tanmia Oil Company.
For further information please see the website of the Company at http://www.seadragon.ca or the Company's filed documents at http://www.sedar.com.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading Risk Factors and elsewhere in the Company's filings with Canadian securities regulators. Specifically that there is no assurance that any hydrocarbon reserves will be discovered nor is there any assurance that any hydrocarbons encountered will be in commercially recoverable quantities. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and expect as may be required by applicable securities laws.
Sea Dragon is an international exploration and development company with a focus on the Middle East and an office in Cairo Egypt.
The TSX.V Venture Exchange has neither approved nor disapproved of the information contained herein.The TSX.V Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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