2010-03-11-2010-01-13-2010-01-13

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
45MM
Description

Bought 50% WI in Egypt's Kom Ombo JV.

Sea Dragon Energy (Kom Ombo) Ltd., a subsidiary of Sea Dragon Energy Inc., Calgary, (Toronto Venture: SDX) has acquired a 50% interest in Egypt's Kom Ombo Block 2 license from Dana Gas Egypt Ltd., a subsidiary of Dana Gas PJSC, Sharjah, United Arab Emirates, for US$45 million.

Under the farm-in agreement, Sea Dragon and Dana Gas will jointly operate the license, which is located approximately 620 miles south of Cairo on the West Bank of the Nile River.

Kom Ombo Block-2 covers more than 4,400 square miles and contains approximately 300 million barrels of original oil in place from multiple oil zones, as well as reserves of approximately 100 million barrels from Al-Baraka Field. Sea Dragon says that three of four wells drilled in Al-Baraka Field are currently producing approximately 850 barrels of oil per day.

The license is in its third and final exploration phase, slated to end in 2012.

Sea Dragon will pay approximately US$20 million of the purchase price out of future production revenue. Payment is due in full on April 30.