Vegas and Partners Find More Egyptian Oil

Date: Thursday, February 9, 2012

Vegas Oil and Gas, Sea Dragon Energy Inc., and Circle Oil saw additional oil discovered while drilling on the NW Gemsa Concession in Egypt. The AASE-10 well, initially planned as the partners’ fourth injection well, encountered oil in the Kareem Formation.

The well was spud on December 20 and successfully drilled to its total depth of 10,450 ft in the Upper Rudeis. Petrophysical analysis of open hole logs indicated 34 ft of oil pay in the Shagar zone and 31 ft of oil pay in the Rahmi zone, thus extending the oil leg further west. The Rahmi interval was perforated from 9,975 to 10,010 ft. Plans are to test this zone prior to determining whether to complete the well as an oil producer or a water injector. New mapping of the Al Amir SE field reserves is now ongoing.

The AASE-11 well, spud on February 5, has reached a depth of 1,783 ft (13-3/8" casing point). The well is planned as a potential Kareem Shagar or Rahmi producer.