Sea Dragon Energy Inc. wishes to provide the following update on its Operations in Egypt.

The Corporation is pleased to report that throughout the past two weeks while demonstrations were taking place in Egypt, field operations were relatively unaffected. Production from the Al Amir SE, Geyad and Al Baraka fields continued without any interruptions.  Drilling and Service rigs are back in operation in both the NW Gemsa and Kom Ombo concessions.

NW Gemsa Concession

Al Amir SE #7 Well
The Al Amir SE #7 well was successfully drilled to a depth of 9,650 feet and the 9 5/8” intermediate casing was run and cemented. Drilling of the 8 1/2“ hole then resumed, however due to mechanical difficulties encountered at a depth of around 10,000 feet, the well was plugged back and sidetracked. The well is currently drilling at a depth of 10,835 feet towards the targeted depth of 16,750 feet.  Preliminary petrophysical analysis of the logs run indicate 6 feet of oil pay in South Gharib Formation, extending the Al Amir  South Gharib oil pool to the west.

The primary target for this well is the Kareem Formation and the secondary target is the Lower Rudeis Formation where gas and condensates were tested in the adjacent Al Amir SE #6 well and also encountered in the Al Ola X-1 well. The well is expected to delineate the western limits of the Al Amir SE field and is anticipated to be completed as a water injector in preparation for commencing water injection in the field. Water flooding of the Al Amir field is expected to provide significant additions to reserves and production.

Production from the Al Amir SE and Geyad fields is currently running steady at around 8,500 bopd.  Cumulative production from the concession has now reached approximately 4.5mmbbls of 42 degree API crude oil.

Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas Oil at 50% as operator and Circle Oil Plc with 40%.

Kom Ombo Concession

Al Baraka #3, #7, SE and #6 Wells
These wells have now been fracked and placed back on production for clean-up of frac fluids. Frac operations appear to have been carried out successfully in all wells.

Al Baraka #5 Well
This well was tied into the production facilities and placed on production.

Al Baraka #14 well
The well was spud on January 11th and drilled to a total depth of 5,643 feet. Open hole logs were run and analyzed. Preliminary analysis of Petro-physical data showed the potential for oil pay in the Six Hills “D” sands. Casing was run and the well is now awaiting completion.

Al Baraka #15 Well
The well was spud on February 9th and is now drilling at a depth of 4,440 feet towards its targeted total depth of 5,000 feet in the Six Hills Formation.

Current gross production from the Al Baraka field is running at 1050 bopd.

Sea Dragon has a 50% working interest and is a joint operator of the Kom Ombo Concession with Dana Gas Egypt owning the remaining 50%. 

Commenting on the latest developments on the Company’s operations in Egypt, Company Chairman and CEO, Mr. Said Arrata stated “It is comforting to see that our production operations remained stable and without disruptions during this period of unrest in Egypt. I am also pleased to see that we are back drilling again in both of our concessions. We are continuing to focus on increasing our production in Kom Ombo through the ongoing fracture stimulation program and the completion and placement of new wells on production. As well with water injection in NW Gemsa scheduled to begin soon, production levels are expected to increase substantially by the end of the year”.

(Press Release)