Sea Dragon Energy Inc. (CVE:SDX) (PINK:SDRYF) operational update made a noticeable impact on the market, except it wasn’t all good.
SDX stock has become very volatile lately. Share price rose roughly 47% over the last week just to waste at least half of that gain this Tuesday. The selloff was massive with around 5 million shares changing hand. The selling pressure rose one day after Sea Dragon announced an operational update.
On October 24 the company gave a heads up on two main projects they’re involed in. NW Gemsa Concession, in which Sea Dragon has a 10% working interest, had news on two important wells.
Al Ola-2 well was drilled to a depth of 10.5 thousand feet. While targeting the water leg of the Kareem Formation explorers found oil, which allowed expanding the nearby reservoir to the west. Geological mapping is now being updated to account for an increase in field reserves.
Another well, Geyad-D, should be spud within a few days. The well targets extension of the oil leg beyond the Geyad-2St bottom hole location.
Two water injection wells were put to work in the Al Amir SE field as well. The production from the Al Amir SE and Geyad fields currently reaches around 7,800 bopd.
The company had less news for Kom Ombo Concession, in which they have 50% working interest. They have improved geological mapping of the Al Baraka field, but no new wells have been drilled. Sea Dragon also ran into trouble finding an appropriate size rig, which is anticipated to delay their exploration program until early 2012. Five wells are planned under the campaign. Al Baraka field’s current production reaches 650 bopd.
