TSX-V : SDX
Publicly listed on the Toronto Venture Exchange
CUSIP: 811375 10 4
ISIN: CA8113751041 www.seadragonenergy.com
Sea Dragon Energy Inc.
255 - 5th Avenue SW
Suite 2320, Bow Valley Square 3
Canada T2P 3G6
Tel: 403 457 5035
Fax: 403 457 5420
Sea Dragon Energy Inc. (TSX-V:SDX) is a junior international oil and natural gas exploration and production company headquartered in Calgary, Canada. The Company is engaged in exploration and development in two concessions in Egypt, with active programs underway at both the NW Gemsa Concession (10% Working Interest) and the Kom Ombo Concession (50% Working Interest). Sea Dragon's management team is experienced in the full cycle of energy including exploration, development, production, marketing and financing. The team members have extensive previous experience operating in Egypt and other countries. Sea Dragon's Strategy
Increase shareholder value through growth in production, reserves and cash flow in the Company's concessions. The Company's two current concessions offer development and exploration opportunities with significant oil-in-place. Sea Dragon is also continuing to identify and evaluate investment opportunities.
The Company's growth strategy is based on working with established companies and identifying and negotiating the acquisition of assets with high growth potential. To date, Sea Dragon has acquired interests in two development concessions in Egypt: the NW Gemsa Concession ("NW Gemsa") and the Kom Ombo Concession ("Kom Ombo"). It has also reached an agreement with Golden Crescent to acquire NPC Egypt assets, which offer transformational potential with production, development and resources.
EGYPT OPERATIONAL UPDATE
CALGARY, ALBERTA, August 27, 2012 - 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.
DAILY PRODUCTION INCREASED TO 1,185 BARRELS OIL A DAY
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 9,100 bopd gross (910 bopd net to Sea Dragon). Cumulative production from the NW Gemsa Concession has now exceeded 8.9 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 injection rates are approximately 18,000 barrels per day at Al Amir SE and 3,800 barrels per day at Geyad. Cumulative injection to date is 4.4 million barrels at Al Amir SE and 1.0 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 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. The primary objective of this well is to provide injection support to the Kareem sands in Al Ola area. The well was drilled to total depth of 10,550 feet and both Shagar and Rahmi sands were cored and 22 feet of Shagar and 20 feet of Rahmi good quality sands were encountered. The future plan is to run casing and dually complete the well as a water injector.
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 550 bopd gross (275 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%.
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-17 Well:
This step out well to AB-16 well was spud on July 28, 2012. AB-17 is located approximately 650 m to the south of AB-16 and was successfully drilled to a total depth of 7,527 m in the basement and logged. Oil shows were encountered in the Six Hills D and Kom Ombo C & A sands. Petrophysical analysis indicate the intervals are water bearing and the well was abandoned.
Total working interest production for the company is now averaging 1,185 bopd. The company is continuing its efforts in search of new growth opportunities with emphasis on Egypt and Sub-Saharan Africa.
NW GEMSA OIL FIELD
The NW Gemsa Concession ("NW Gemsa") is a 250 square kilometer onshore concession located approximately 300 kilometers southeast of Cairo in the Eastern Desert. As at December 21, 2009, the Company acquired a ten (10%) percent participating interest in NW Gemsa with an effective date of July 1, 2009. The Company's partners in NW Gemsa are Vegas Oil and Gas (operator, 50% interest) and Circle Oil Plc (40% interest).
Three fields have been discovered in the NW Gemsa Concession; Al Amir SE, Al Amir and Geyad. Development leases were issued for each of the fields. The Al Amir SE field is located in the southeastern portion of the NW Gemsa Concession and lies approximately six kilometres west of the oil producing Gazwarina field. Production from the Al Amir SE field commenced in February 2009. The Geyad field is located approximately ten kilometres northwest of the Al Amir SE field.
In the Al Amir SE and Geyad fields, the two main pay zones are the Shagar and Rahmi sands in the Kareem sands containing light oil (40-42oAPI). In the Al Amir field the heavier oil pay (17oAPI) belongs to the younger South Gharib Formation.
In 2010, development, appraisal and step out drilling resulted in 3 additional wells in Al Amir SE. The Al Ola-1X successfully extended Al Amir SE field Kareem reserves beyond the current lease boundaries. Application was made to the government for extending the development lease, both south and west of the existing boundaries.
During 2011, the Al Amir SE field will undergo pressure maintenance through water injection, preservation of associated gas and stripping of hydrocarbon liquids. The Company's $5.0 million capital expenditure program includes, but is not limited to, expanding the production facilities, building a 20 km eight inch gas line, the drilling of up to four water injection wells and up to two development wells and the building of gas compression facilities.
Water injection is expected to commence Q4, 2011. This marks the beginning of the water flood project which will result in significant increase in recoverable reserves and production levels from the field.
Current production from the Al Amir SE and Geyad fields is running steady at around 8,000 bopd (800 bopd net to Sea Dragon).
|Monday, August 27, 2012 |
Egypt Operational Update
Friday, August 24, 2012
Q2 Financials Released
Thursday, July 26, 2012
Egypt Operational Update
Monday, July 23, 2012
Golden Crescent Agreement Terminated
Wednesday, June 06, 2012
Egypt Operational Update
In April 2010 Sea Dragon concluded the acquisition of a 50 percent working interest in the Kom Ombo Block 2 Concession ("Kom Ombo"), which is jointly operated with Dana Gas Egypt ("DGE"), a successor company Centurion Energy. This large concession is location in Upper Egypt approximately 1,000 km south of Cairo and covers an area of 11,446 km2.
Kom Ombo includes the Al Baraka field, discovered in 2007 by Centurion Energy. The field is producing from four productive zones (Abu Ballas, Six Hills E and F and Kom Ombo Sands).
In June 2010, the Company completed a 477 km 2D seismic program on the Kom Ombo Concession, including 75 km in the previously unexplored northwest basin. The results from the seismic program are expected to be used to further delineate certain leads and prospects identified in that basin area.
Also in 2010, the Company and DGE jointly drilled a total of eight development wells in the Al Baraka field. Six of these wells were successfully completed and have been placed on production. In December 2010, the Company and DGE drilled an exploration well, Memphis-1, approximately 28 km northwest of the Al Baraka field. Excellent reservoir quality rocks were encountered in the Abu Ballas and Six Hills Formation, however, no commercial hydrocarbons were observed in the well. The Company and DGE intend to conduct additional exploration drilling in the region in 2011.
During 2011, the Company's $7.4 million capital expenditure program includes, but is not limited to, the drilling of five additional development wells, several work overs and fracs, and up to two exploration wells outside of the development lease.
Seismic interpretation and geological studies are continuing in an effort to firm up locations for the two exploratory wells and AB-16, AB-17 and AB-18 development wells planned for Q4, 2011.
Current production from the Al Baraka field is approximately 700 bopd (350 bopd net to Sea Dragon)
Mr. Said Arrata, Chairman, CEO firstname.lastname@example.org Mob: +1 403 708 5870
Mr. A.D. (Tony) Anton, President, COO email@example.com Mob: +1 403 399 0698
Mr. Olivier Serra, CFO firstname.lastname@example.org Mob: + 336 0834 3077