Reef Resources to Ramp Production at Ausable #5 Well

- Reef Resources to Ramp Production at Ausable #5 Well

Thursday, September 01, 2011
Reef Resources Ltd.

Reef Resources plans to install a hydraulic venturi downhole pump in the Ausable # 5 well. This proven oilfield technology, replacing conventional bottomhole pumps with venturi units, is currently being installed and tested on the Ausable #1 well. The hydraulic unit is designed to operate efficiently with the light oil and condensate currently being produced from the Ausable reef and will provide optimum production flow rates. It is anticipated that the hydraulic pumping units will also be installed in Ausable # 2 and Ausable # 4 over the course of the next two months.

Following the installation of the venturi pump in Ausable # 5 the Company will be in a position to accurately report production flow rate in addition to production potential with the previously announced Enhanced Oil Recovery (EOR) and cyclic natural gas liquids (NGL's) program. Under the EOR program, reservoir analysis and design work to date indicates re-pressurization of the reservoir will have a significant positive impact on overall field production and recovery factors. Results and updates of the Company's optimization program and implementation of the cyclic gas EOR program will be released once fully operational.

Reef also announced that two of the three frac tools from the Ausable #2 horizontal well have been successfully recovered. Approximately 75% of the productive zone is now open. Additional fishing operations are not viewed as cost effective and the Company will be moving forward with wellbore clean up and flow testing. A further announcement will be made once the well is on stream.

Arnie Hansen stated, "We continue to view Ausable # 5 very positively and the Company's engineering and operations team is working diligently to increase production by implementation of the venturi pumping system followed by the re-pressurization of the reef and commissioning of the EOR and NGL program. There are numerous analogous fields where these types of optimization efforts have successfully yielded significant increases in production once in operation."

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Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

- Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

Tuesday, August 16, 2011
Statoil

The partners in the Åsgard licenses have submitted a plan for development and operation (PDO) of subsea gas compression to maintain production from the Mikkel and Midgard reservoirs.

Øystein Michelsen, Statoil's executive vice president for Development and Production Norway (DPN), presented the PDO to Ola Borten Moe, Norway's minister for petroleum and energy.

"The decision to improve recovery from Åsgard is one of the most important we are taking this year to sustain output on the Norwegian continental shelf," said Michelsen.

"This solution has been made possible through an innovative partnership on the Åsgard license."

The PDO represents a quantum leap in technological terms, which could contribute to a substantial boost in recovery factor and production life for a number of gas fields.

Subsea compression on Åsgard is expected to improve recovery from the Mikkel and Midgard fields by some 278 million barrels of oil equivalent.

That makes the project one of the most important contributors to new volumes, and provides future opportunities for improved recovery from a number of fields.

Quantum leap

Natural pressure in Midgard and Mikkel will become too low over time to maintain stable flow and a high production profile from the Åsgard B platform in the Norwegian Sea.

To compensate for this decline, Statoil intends to install seabed compressors near the wellheads and so increase the pressure. Wellstreams will be piped in a common line to Åsgard B.

"This represents a quantum leap in subsea technology, and an important step in realizing our vision of a complete underwater plant," said Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling.

"The technology has a substantial potential for improving recovery," she added, and emphasized that it is important for future field development in deep water and Arctic regions.

"Testing and qualifying new solutions is vital to the success of our technological developments," Øvrum noted. "We have already come a long way, but know that the remaining stretch will be a demanding one.

"Developing technology is always challenging, but we have surmounted technological obstacles before and are confident that we will succeed in doing so again on Åsgard together with our partners."

She adds that substantial synergy exists between technological qualification on Åsgard and the work being done by Statoil together with operator Shell on the Ormen Lange gas field.

Åsgard's bright future

Åsgard is a crucial hub on the Halten Bank and a key factor in the Norwegian Sea. Subsea compression from Mikkel and Midgard will safeguard future production from the field, said Michelsen.

Statoil is working continuously on other measures to improve recovery in the same area – including reducing processing pressure, drilling and maintaining wells, and applying innovative solutions.

Åsgard is an important hub in a prospective area, and spare processing capacity which becomes available in its facilities can also be offered to others.

"Our vision is a field which is still producing in 2050 with a recovery factor among the best in the world," said Michelsen.

The subsea compression development will also expand capacity in the Åsgard Transport pipeline, which carries gas from Norwegian Sea installations to the Kårstø plant north of Stavanger.

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Sea Dragon to Ramp Up Production at NW Gemsa Concession

- Sea Dragon to Ramp Up Production at NW Gemsa Concession

Monday, July 25, 2011
Sea Dragon Energy Inc.

Sea Dragon provided the following update on its operations in Egypt.

NW Gemsa Concession

Al Amir SE#8 Well: The well was spud on May 20, 2011 and successfully drilled to its total depth of 10,750 ft. This is the second of four water injection wells planned for the Al Amir SE water secondary recovery project. Well logs indicate good quality sands in both the Kareem Shagar and Rahmi zones, well suited for water flooding purposes. Pressure measurements indicate that communication exists with other producers in the area. The well was successfully perforated on July 10(th) in the interval 10,404 to 10,432 ft within the Kareem Rahmi interval. The Kareem Shagar Formation will be perforated at a later date.

Geyad-5 Well: The Geyad-5 water injection well was spud on July 23(rd) , 2011 and is currently drilling below 400 ft. The well is expected to reach a total depth of 7,000 ft. and bottom in the Upper Rudeis Formation. This well is located approximately 1.1 km west-south west of Geyad-1X and 2 km of the recently drilled Geyad-3C well. It is targeting the Kareem Formation water leg in the western edge of the field.

Water injection is expected to commence in Q-4, 2011. This marks the beginning of the water flood project which will result in significant increase in recoverable reserves and production levels from the field.

Current production from the Al Amir SE and Geyad fields is running steady at around 8,000 bopd (800 bopd net to Sea Dragon). Cumulative production from the NW Gemsa Concession has now exceeded 5.6 million barrels of 42 degree API Crude oil.

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

Kom Ombo Concession

Geological, geophysical and engineering work and studies are continuing. The work includes a remapping of the Al Baraka field and exploratory prospects. This work will be complemented by the results of other geotechnical studies now underway to firm up locations for the two exploratory wells and AB-16, AB-17 and AB-18 development wells planned for the fourth quarter, 2011.

Work is underway currently on securing a drilling rig and ancillary services to be mobilized to Kom Ombo and begin operations during the fourth quarter. All tubular and supplies have already been ordered and should be available within the next two months.

Production from the Al Baraka field is approximately 800 bopd (400 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%.

Commenting on the latest developments on the Company's operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated, "We are very pleased with the progress made on drilling the water injection wells in our NW Gemsa Concession. We are looking forward to the commencement of the water flood project and the resulting increase in production. In Kom Ombo, preparation work for the fall drilling season is well underway."

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