Sea Dragon Energy Inc. (“Sea Dragon” or the “Company”) (TSX VENTURE: SDX) is pleased to announce the acquisition of an equity interest in the South Ramadan Concession located offshore in the Gulf of Suez, Egypt.
The 26.2 km2 concession, located in 27m of water, contains two proven productive horizons in the Eocene age Thebes and Senonian age Matulla carbonates. These horizons, combined, have produced 3.75 MMBO of light oil (31⁰API) to date from two previously drilled wells tied back to an existing platform.
The concession is also located between the giant Ramadan field (550 MMBO) and the Saqqara field (80 MMBO) both of which produce light oil from the Lower Cretaceous age Nubia sandstones which are the primary development targets within this concession. The work commitment, over the 10 year extension period, is $23MM which consists of 1 new well and facility upgrades.
Sea Dragon is a 12.75% equity owner in the South Ramadan concession with Pico holding 37.5% and operatorship and GPC holding the remaining 50%.
Commenting, Paul Welch, CEO of Sea Dragon, said:
“Securing an interest in this concession underpins our focus on developing reserves and expanding production within the Gulf of Suez Fairway that we have been developing over the last year. The capital raised from the recent sale of our Upper Egypt assets will be redeployed into an area where we’ve had considerable success and understand the geology well. I am looking forward to reporting on the development of this concession in the coming months. ”