Sea Dragon Energy announces Egypt operational update

Tuesday, Nov 06, 2012

CALGARY, Nov. 5, 2012 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE: SDX) is pleased to announce the following operational update for its recent work program in Egypt.

NW GEMSA CONCESSION

The NW Gemsa concession is located onshore on the west side of the Gulf of Suez, some 300 km southeast of Cairo. Two main oil fields are producing light oil, the Al Amir SE field along with the Al Ola extension to the south and the Geyad field to the north.

Current production from the Al Amir SE and Geyad fields is approximately 9,000 bopd gross (900 bopd net to Sea Dragon). Currently producing wells include seven Al Amir SE wells, two Al Ola wells and three Geyad wells.  Cumulative production from the NW Gemsa Concession has now exceeded 9.58 million barrels of 42 degree API Crude oil.

Water injection is ongoing with three injectors currently operating at Al Amir SE Field and two injectors at Geyad Field.  Current total injection rates are approximately 14,700 barrels per day.  Cumulative injection to date is 5.54 million barrels at Al Amir SE and 1.14 million barrels at Geyad.

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

Geyad-6ST Well:

This Shagar oil producer was initially tested at 1600 bopd on a 24/64" choke. The well is now tied-in and producing at a stable rate of 906 bopd on 18/64" choke.

Al Amir SE-13 Well:

This development well was spud on October 14, 2012 with the objective of appraising the northern area of the field between AASE#4 and AASE#11 wells.  The well has now reached a depth of 9,888 feet and began coring the Kareem Formation.  Plans are to drill the well to its projected total depth of 10,100 feet and produce the Kareem Shagar and Rahmi sands.

Al Amir SE-7 Injector Work Over:

Operations were recently conducted to reperforate and recomplete this well as a single zone Rahmi water injector.  The well was previously a commingled Shagar / Rahmi injector, however differences in reservoir quality resulted in most of the water being directed to the Shagar.  The workover will result in increased water injection into the Rahmi zone, where additional volumes are needed to maintain reservoir pressure, optimize production and maximize oil recovery.

Al Ola-3 Well:

Operations are underway to dually complete this injection well in the Rahmi and Shagar sands.  The well has been successfully perforated in the intervals: 10,232-10,252 feet and 10,164-10,182 feet.   Plans are to run a final completion string and commence water injection.

Source: Sea Dragon Energy Inc.

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