Sea Dragon Energy Inc. (“Sea Dragon” or the “Company”) is pleased to announce the following operational update for its recent work program in Egypt. The Kom Ombo Concession is located onshore in the southern part of Egypt some 1,000 km south of Cairo. It contains the Al Baraka oilfield, producing light oil from multiple reservoirs and an exploration area of 11,400 km2.
Current production from the Al Baraka field is averaging approximately 590 bopd gross (295 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%.
Al Baraka-11 well:
This well, located 330 meters south east of the Al Baraka-16 well, was standing suspended in the Six Hills “E” Formation. The Six Hills “F-1” zone was perforated in the interval 3,880-3,939 feet and successfully fraced. The well is currently contributing an average of 70 bopd to Al Baraka Field production.
West Al Baraka-2 Well:
The Abu Ballas Formation in this well was successfully fraced. During clean up the well tested 170 bopd. The well is currently shut in pending the declaration of commerciality and preparation of a Development Lease application before being placed on production.
Al Baraka-16 Well:
This well tested 530 bopd from the deeper Kom Ombo “C” sands. Upon placing the well on production the daily oil rates declined sharply. Reasons for the decline are being investigated.
This second exploratory commitment well located 4.5 km south of Al Baraka oilfield, was spud on June 26, 2012 and drilled to a total depth of 6,785 feet in the basement. The primary objective was the Kom Ombo sands in a large fault block. The well encountered oil shows in both the Kom Ombo C and A sands, however, it failed to produce oil on test and was subsequently plugged and abandoned. The rig was released and is currently being mobilized to the AB-17 location.
Total working interest production for the company is now averaging 1,245 bopd. The company is continuing its efforts in search of new growth opportunities with emphasis on Egypt and Sub-Saharan Africa.