Sea Dragon Energy Inc. (“Sea Dragon” or the “Company”) (TSX VENTURE: SDX), an oil & gas exploration and production company with assets in Egypt, is pleased to announce the Al Amir SE 17 development well was successfully tested at a rate of 3,664 bopd and that the Shehab-2 exploration has subsequently been spudded. Both wells are located in the prolific NW Gemsa concession.
Al Amir SE-17 Well:
Al Amir SE-17 (AASE-17) was drilled to a depth of 9,905 feet where both Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 12 feet of net Shagar pay and 16 feet of Rahmi net oil pay. The well was perforated in the Shagar from 9,560-9,580 feet and flow tested 3,664 bopd of oil on an 8/64 inch choke, with a flowing wellhead pressure of 800 psi. The well is now producing following completion of testing at a restricted initial rate of 1,134 bopd and 1.31 MMscf/d on a 24/64” choke. The concession production rate is restricted by surface off-take facility constraints and will be limited to 12,500 bopd until field improvement projects have been completed.
Shehab – 2 Exploration Well Spud:
After completing the Al Amir SE-17 well, the rig was moved to the Shehab-2 exploration well location approximately 2 kms north of the Geyad field. The well spud on June 19th, targeting the prolific Kareem horizon at a projected total depth of 5,000 feet. If successful, the well is anticipated to open up an area similar in size to the Geyad discovery. Drilling and completion operations are anticipated to take between 30-40 days.
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%.
The company’s net production in Egypt averaged 1,933 boepd during the month of May 2013, with 1,245 boepd net from NW Gemsa, 206 bopd from Kom Ombo and 482 bopd from Shukheir Marine.
Commenting, Paul Welch, CEO of Sea Dragon, said:
“The AASE17 well represents a further strong result and again underpins our production and cashflows, within our producing areas in Egypt. I am also very excited about the potential of the Shehab-2 exploration well which, if successful, will continue the impressive record of production growth within the NW Gemsa concession. I look forward to reporting on the results of this well in the near future”.