Al Baraka-16 Discovery Well Tests at 530 Bopd

Sea Dragon Energy Inc. (Sea Dragon or the Company) is pleased to announce that the Al Baraka-16 well has discovered oil in a separate fault block from the main Al Baraka field and tested oil from the deeper Kom Ombo ”C “ sand pay. This discovery has the potential of more than doubling the current field production. This development well was successfully drilled to a total depth of 7,590 feet in the basement.

The well is located on Al Baraka development lease on a separate fault block, immediately southwest from the main Al Baraka field. The well encountered oil shows in the Six Hills F1, Kom Omb ”C “ and Kom Ombo “A“ sands. Cores were cut in the Six Hills F1 and Kom Ombo “A“ sands. Core and petrophysical analyses show 60 feet of oil pay in the Kom Ombo “C”, 18 feet in the Six Hills F1 and 4 feet in the Kom Ombo “A”.

The Kom Ombo “C “ was selectively perforated in the interval 6,610-6,767 feet and tested with Nitrogen lift at a rate of up to 530 bopd. This is the first commercial oil discovery in the Kom Ombo “C” sands where oil shows were observed in other wells previously drilled on the concession. The forward plan is to place the well on an extended production test to establish a stabilized production rate, map the extent of the pay and develop a plan for future step out wells.

West Al Baraka-2 Well:
The West Al Baraka-2 (WAB-2), the second oil discovery on the Kom Ombo concession is currently awaiting hydraulic fracture stimulation (frac). The frac program will be carried out by mid-June to determine the commercial viability of this discovery.

Faris-1:
This exploratory well, the second commitment well, is located 4.5 km south of Al Baraka oilfield, 4.3 km south of AB-16 discovery and 5.5 km northeast of the WAB-2 discovery. The well is proposed to be drilled to a total depth of 6,700 feet into the basement to test a large separate fault structure. The primary objective of this well is to appraise the deeper Kom Ombo “C” sands updip from AB-16 with the secondary objectives being the shallower Six Hills and Abu Ballas Formations. Success at Faris-1 will open the Kom Ombo “C” sands play, as several follow up prospects and development locations have been identified.

Current production from the Al Baraka field is averaging approximately 500 bopd gross.
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. Sea Dragon has a 50% working interest and is a joint operator of the Kom Ombo Concession with Dana Gas owning the remaining 50%.