Sea Dragon Energy Inc. is pleased to provide the following update on its operations in Egypt.
NW Gemsa Concession
The Geyad-3C well was spud on April 22nd, 2011. The well is located some 1.4 km to the southeast of the Geyad-1X ST well and 2.9 km southeast of the Geyad-2 ST well within the Geyad Development Lease. Having landed a 13 3/8” surface casing at 1,810 feet, the well is currently drilling below 4,300 feet in 12 ¼” hole.
The Geyad-3C is expected to reach a total depth of 6,130 feet and bottom in the Upper Rudeis Formation. The primary objective for this well is to appraise and bring into production the oil bearing Shagar member of the Kareem Formation. Secondary objectives include the South Gharib and Belayim Formations and the Rahmi member of the Kareem Formation.
Geyad-3C is the first of two wells to be drilled in 2011 in the Geyad development lease.
Al Amir SE#7 Well:
The well was completed as a water injector in both the Shagar and Rahmi members of the Kareem Formation. The Shagar reservoir was completed with 33 feet of perforations while the Rahmi reservoir was completed with 37 feet of perforations.
Water injection is expected to commence in late June. This marks the beginning of the water flood project which will result in significant increase in recoverable reserves and production levels from the field.
Production from the Al Amir SE and Geyad fields is running steady at around 7,500 bopd (750 bopd net to Sea Dragon). Cumulative production from the NW Gemsa has now reached approximately 5.0 million barrels of 42 degree API crude oil.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas at 50%, as operator, and Circle Oil PLC with 40%.
Kom Ombo Concession:
Drilling: Seismic interpretation and geological mapping work is now underway in an effort to firm up locations for the two exploratory wells and three development wells planned for the fourth quarter, 2011.
Production: Based on field estimates production from the Al Baraka field is running steadily at approximately 900 bopd (450 bopd net to Sea Dragon).
Sea Dragon has a 50% working Interest and is a joint operator of the Kom Ombo Concession with Dana Gas owning the remaining 50%.
Commenting on the latest developments on the Company’s operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated “Our work plans for 2011 are off to a good start with the impending commencement of our water flooding operations in Al Amir field and the spud of a new Geyad development well. In Kom Ombo, detailed geotechnical work is well underway in preparation for the fall drilling season”.