Sea Dragon Energy Inc. is pleased to announce that the Al-Amir SE-5 appraisal well has been successfully drilled and production tested in the Al-Amir Development Lease in the onshore North West Gemsa Concession in Egypt.

Sea Dragon is delighted to confirm that the Kareem Formation Sandstones under test flowed 42° API oil at sustained average rates of 6,150 bopd and 6.9 MMscfd of gas using a 64/64″ choke and at 4,300 bopd and 4.9 MMscfd of gas using a 48/64” choke from the upper of the two identified pay zones. The well, which is the fourth appraisal well to be drilled in the Al-Amir SE discovery area, has been completed and production tested and will now be prepared for production.

Log result interpretations indicate that the total net thickness of the two pay zones is approximately 36.5 feet. The upper pay zone identified in the Kareem Shagar Sandstone is 19 feet thick. The lower pay zone in the Kareem Rahmi Sandstone is 17.5 feet. A full technical evaluation of all the results is underway to assist in development planning and is a precursor to continuing further assessment of the resource potential. These results will also assist in delineating the extent of the reservoir in the area. An assessment of reserves has not yet been completed.

The NW Gemsa concession, containing the Al-Amir and Geyad Development Leases, covering an area of over 260 square kilometres, lies about 300 kilometres southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production license of 20 years, plus extensions, in the event of commercial discoveries. The North West Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

The drilling rig will now move to commence drilling the Al-Amir SE-6 well which is the fifth appraisal well in the Al-Amir SE discovery area. The primary target is again the Kareem Formation.

Mr. Said Arrata chairman and CEO of Sea Dragon said, “We are delighted with the successful testing and completion of the Al Amir SE-5 well. The knowledge gained from drilling at this location gives the partners a better understanding of the extent of the reservoir in this area which may now be slightly larger than originally mapped. Ongoing drilling will focus on appraisal and development to enable us to better understand the reservoir geology of the field and plan for pressure support in the future when required.”

(Sea Dragon Press Release)