Sea Dragon Energy has commenced drilling of its Dahab North prospect in the East Wadi Araba ("EWA") Concession. The EWA Concession covers 193 square kilometers, or approximately 47,691 acres (35,768 net acres), located off-shore in the Gulf of Suez, Egypt. The Gulf of Suez currently accounts for 50% of Egypt’s total oil and gas production of 660,000 boepd.
As referenced in the Company’s news release dated November 3, 2008, Sea Dragon now has the Transocean GSF Rig 103 set up and has now commenced drilling its Dahab North prospect. Key attributes to the Dahab North prospect and the EWA Concession as outlined in the Sea Dragon Prospectus dated July 3, 2008 under The EWA Concession; Statement of Reserves Data and Other Oil and Gas information and Summary of Estimated Prospective Resources in the EWA Concession include:
- Prospective Resources – Best Estimate (NI 51:101);
- Total Development Well Count – 5;
- Initial Rate / Well (STB/d) – 4,500;
- Undiscovered Petroleum Initially In Place ("PIIP"), Thousand Stock Tank Barrels ("MSTB") – 161,270;
- The recovery factor of reservoir oil in this area is one of the highest in the world and might reach 45-50% on primary recovery as a result of three main factors:
- 1. very active water drive;
- 2. good quality, laterally extensive, reservoirs; and
- 3. higher than normal reservoir pressures and temperatures.
- The gravity of the oil from each prospective reservoir is estimated to be 22-25 API;
- Productive hydrocarbon zones are expected to be encountered at depths of 2200 meters or less;
- Multiple target reservoirs of the Kareem, Rudeis and Nukul formations; and
- The Gulf of Suez has a well-developed infrastructure in place to transport oil to market.
"We are excited to announce the spudding of our Dahab North offshore drilling prospect. With an anticipated timeframe of 45 – 60 days, we expect to be at total depth in Q1’09. Given the historical production in the adjacent Warda Field combined with our extensive seismic information, we look forward to the potential of our first prospect," stated David Thompson, Sea Dragon’s president and chief executive officer.