2010-03-10-2009-12-21-2009-12-21

Acquired company with 10% WI in NW Gemsa concession in Egypt, gaining 617 BOP/d.

Sea Dragon Energy Inc., Calgary, (Toronto: SDX) has acquired Premier Oil Egypt BV, a subsidiary of Premier Oil Plc, Edinburgh, (London: PMO) for $14.7 million.

The total consideration includes the purchase price of $12.5 million, as well as working capital adjustments from the acquisition date of July 1 through Dec. 21.

Sea Dragon signed the sale and purchase agreement, which includes a 10% working interest in the NW Gemsa concession 300 kilometers southeast of Cairo, in August.

The NW Gemsa concession features a nine-well development program of the Al-Amir and Geyad areas. Five wells have been brought onto production in the Al-Amir and Geyad development leases since February 2009, while a sixth is in progress; three more are expected to be completed before the end of 2010. Gross daily production reached 6,170 barrels of oil per day in November, and cumulative production from the concession is now more than 1 million barrels.

Sea Dragon chairman and chief executive Said Arrata says, "We are very pleased to have concluded this acquisition. The NW Gemsa property is very exciting for us and we have high expectations for the completion of the development program and possible additional exploration potential."

Sea Dragon's partners in the concession are operator Vegas Oil and Gas SA (50% working interest) and Circle Oil Plc (40% working interest).