Canada's Sea Dragon completes Egypt well, hits two oil columns

CANADA'S SEA-DRAGON said its al-Ola X-1 well on Egypt's Northwest Gemsa concession had reached total depth of 14,323 ft in the Nukhul formation, having successfully encountered two oil bearing columns and strong gas shows that could significantly add to the field reserves.

The company said the Shagar and Rahmi members of the Kareem formation in the al-Ola X-1 well had encountered 6 ft and 19 ft oil net oil pay respectively, adding that no oil water contact was seen.

Once tested and placed on production, Sea Dragon said the two oil columns would result in extending the al-Amir SE development lease to the south of the existing boundary with the potential of significantly increasing the field reserves.

The company also said strong gas shows were encountered in the Lower Rudeis formation, which is now being analyzed for testing prior to completing in the Kareem formation.

Separately, the company said production from the al-Amir, al-Amir SE and Geyad fields in the NW Gemsa Concession was holding steady at around 9,000-9,500 bpd, with water flooding operations planned for al-Amir SE and Geyad to provide pressure support and significant production increases.

"We are quite encouraged by the continued success of the development drilling campaign in NW Gemsa and the anticipated rise in production and reserves from the planned water flooding operations," said Sea Dragon CEO Said Arrata in a company statement.

The NW Gemsa concession, containing the Al-Amir and Geyad Development Leases, covers an area of more than 260 square km and is located around 300 km southeast of Cairo in a partially unexplored area of the Gulf of Suez basin.

Cumulative production from the concession, in which Sea Dragon has a 10 per cent interest and is partnered by operator Greek Vegas Oil with 50 per cent and the UK's Circle Oil, had now reached 3.3 million barrels of oil with gravity of 41 API.

Elsewhere in Egypt, Sea Dragon said the al-Baraka SE step-out well on the Kom Ombo concession was spudded on September 15.

The well is located around 4 km southwest of the al-Baraka 9 well and is intended to delineate the edge of the al-Baraka field.

The well is scheduled to reach a total depth of around 8,500 ft and will test all sands including the Kom Ombo Formation, the company said, with additional development wells and possibly an exploration well to be drilled following its completion.

The al-Baraka field is currently producing around 600-700 bpd, which is expected to climb towards a year-end exit target of 2,000 bpd with the imminent arrival of a completion/workover rig at the al-Baraka 9 well.

"The commencement of our completion and workover programme in al-Baraka field should also result in a gradual increase in field oil production towards year-end," Arrata said.

The Kom Ombo concession is around 1,000 km south of Cairo on the west bank of the River Nile. Sea Dragon has a 50 per cent participation interest in the block and is partnered by Dana Gas Egypt.

Sea Dragon has a 50 per cent working interest in the Kom Ombo Concession, which it jointly operates with Dana Gas.

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