CALGARY, ALBERTA--(Marketwire - May 4, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE:SDX) announces that, further to its press release of January 13, 2010, it has now paid Dana Gas Egypt Ltd. ("DGE") the sum of US$28.48 million for its purchase of a fifty (50%) percent participating interest in the Kom Ombo (Block-2) Concession, located approximately 1,000 km south of Cairo on the West Bank of the Nile River (the "Kom Ombo Concession"). Sea Dragon had previously paid an initial instalment of US$10 million to DGE in January 2010 concurrent with becoming the registered holder of the Kom Ombo Concession under Egyptian law. There continues to be a small balance due from the Company to DGE of approximately $3.0 million which will be paid once all working capital and other adjustments have been finalized between the parties.
The aggregate purchase price for the Company's 50% participating interest in the Kom Ombo Concession is approximately US$41.27 million, inclusive of Sea Dragon's reimbursement to DGE of approximately US$4.0 million of Sea Dragon's participating interest share of costs paid by DGE for the period after the effective date and prior to the closing date and inclusive of certain working capital adjustments of approximately US$4.0 million. Under the terms of the acquisition, Sea Dragon is also responsible to pay approximately $4.0 million of DGE's share of costs incurred after the effective date.
Commenting on the acquisition of the Kom Ombo Concession, Mr. Said Arrata, Sea Dragon's Chairman and CEO said: "We are delighted with this significant acquisition for Sea Dragon. We have already commenced work with our partners in preparing on our development drilling programme in the 2nd quarter of 2010. Plans for the Al-Baraka oil field will include the drilling of some 30 development wells over the next several years. Horizontal drilling and specialized fracturing are the techniques being considered in order to maximize production rates and oil recovery."
Sea Dragon is an international exploration and development company with a focus on North Africa and Sub-Saharan Africa and offices in Calgary, Canada and Cairo, Egypt.
For further information please see the website of the Company at www.seadragonenergy.com or the Company's filed documents at http://www.sedar.com.
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning the development of the Al Baraka field and exploration of the Kom Ombo Concession and events or projections referenced or implied herein should be viewed as forward-looking statements.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and production development; political, social and other risks inherent in carrying on business in a foreign jurisdiction, the effects of a recessionary economy and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
This news release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intended" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressly qualified by this cautionary statement.NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
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