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 19 development well has encountered significant oil bearing reservoir sections in both the Kareem Rahmi and Shagar formations and will be completed as a producer in the Shagar.
Al Amir SE-19 Well:
Al Amir SE-19 (AASE-19) was drilled to a depth of 10,000 feet where both the Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 19 feet of net Shagar oil pay and 10.5 feet of net Rahmi oil pay. The well has been completed as an oil producer in the Shagar and has flowed on test light 42.3⁰ API oil at a rate of 1,365 BOPD with 1.405 MMSCFD of associated gas. The well is currently shut in for a build-up but will be placed in production as soon as the rig is moved off location.
Commenting, Paul Welch, CEO of Sea Dragon, said:
“The AASE19 well results were very positive. The development program at NW Gemsa continues to deliver superior results and we anticipate another strong year of production from this asset in 2014. It’s a great asset with significant future potential. We are excited about the year ahead in Egypt as the situation continues to improve and I look forward to reporting on the growth of our business there as it expands and develops”.
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 current net production in Egypt is 1,705 boepd with 1,305 boepd net from NW Gemsa, 400 bopd net from Shukheir Marine.