CALGARY, Feb. 14, 2013 /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 activities in Egypt.
FUTURE OUTLOOK: In 2013 the company's capital budget is expected to be approximately $6.0 million to be financed entirely from existing cash flow. Average production is expected to average 1,725 boe/d, an increase of approximately 700 boe/d over 2012.
Sea Dragon is continuing to fully exploit its existing assets and expand its operations in Egypt while seeking new high impact opportunities in the MENA region and sub-Saharan Africa.
NW GEMSA CONCESSION
The NW Gemsa concession is located onshore on the west side of the Gulf of Suez, approximately 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. Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas at 50%, as operator and Circle Oil PLC with 40%.
Current production from the Al Amir SE and Geyad fields is approximately 10,350 boe/d gross (1,035 net). Currently producing wells include seven at Al Amir SE field, two at Al Ola and four at Geyad. Cumulative production from the NW Gemsa Concession has now exceeded 10.4 million barrels of 42 degree API Crude oil.
The gas conservation project is now complete and solution gas conservation and incremental liquids production commenced on February 12, 2013. Preliminary volumes are 7.2 mmcf/d (720 mcf/d net) of sales gas, 150 bpd (15 bpd net) of condensates and 38 tons (3.8 net) of LPG's/day.
Water injection is ongoing with four injectors currently operating at Al Amir SE Field and one injector at Geyad Field. Current total injection rates are approximately 14,500 bwpd. Cumulative injection to date is 6.6 million barrels at Al Amir SE and 1.6 million barrels at Geyad.
Al Amir SE-14 ST#2 Well:
This development well was spud on November 26thwith the objective of appraising the Shagar and Rahmi reservoirs between the Al Ola-1x and Al Amir SE-12ST wells. The second side track hole was successfully drilled to its total depth of 10,000 feet and encountered net oil pays in both the Shagar and Rahmi reservoirs with 16 feet and 13 feet respectively.
SOURCE Sea Dragon Energy Inc.
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