Oil discovery made onshore Egypt

LONDON, May 6 (UPI) -- Exploration company Sea Dragon Energy announced Tuesday it encountered oil while drilling into an Egyptian basin on the west side of the Gulf of Suez.

The company said its al-Amir SE 21 development well ran through a net 23 feet of oil. The company said the well flowed at a preliminary rate of 3,000 barrels of oil per day and 3.2 million cubic feet of associated gas.

Once the drilling rig is moved from the location later this year, the company said the well would be placed into production.

Paul Welch, Sea Dragon's chief executive officer, said the entire field, located west of the Gulf of Suez, should be able to produce at a peak rate of 11,500 barrels of oil and 12 million cubic feet of associated gas per day.

Sea Dragon is the minority partner in the concession, alongside operator Vegas Oil and Gas and Circle Oil PLC.

Sea Dragon's net production from Egypt is 1,680 barrels of oil equivalent per day.

Egypt holds an auction for oil and gas basins in July.