Sea Dragon Energy provided this year’s work program and budget for both NW Gemsa and Kom Ombo concessions, and considering 11 new projects with Tanmia Petroleum Company.
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 $46MM with Sea Dragon’s 10% share being $4.6MM. As a result of the additional development drilling and facilities expansion total gross production from the concession is expected to exceed the 10,000bopd 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 Km² 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.”