Sea Dragon Energy closes a US$50 million loan facility and completes internal group reorganization

CALGARY, Sept. 26, 2011 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSXV: SDX) is pleased to report the closing of a 5-year senior secured US$ 50 million loan facility (the "Facility") with BNP Paribas and HSBC Bank PLC.

The Facility provides the Company with access to additional capital, if and when required, as well as for future acquisitions. Capital spend program has been carried out with internal cash to date as the Company has no debt. This facility will provide increased financial flexibility.

The Company also announces that it has completed an internal reorganization resulting in the establishment of intermediate holding companies that will circulate proceeds of the financing and crude oil sales throughout the Sea Dragon group of companies to support operational needs.

The Facility includes customary provisions, borrowing base ratios and other covenants. The borrowing base is subject to routine semi-annual redetermination based on updated forecast reserves, production and receivables.

Bank Comments

BNP Paribas commented: "This loan facility endorses the management of Sea Dragon with whom we have a long established relationship dating back to Centurion Energy. Its team of talented and experienced managers is well respected and highly regarded in the oil and gas industry, and in Egypt in particular. They are very well positioned to seize opportunities in their area of focus."

HSBC commented: "We are pleased to finance a transaction in Egypt with a management team that has a strong local operational setup. This is the first such transaction in the country this year and more importantly, the first one since the Arab Spring".

Management Comments

Said Arrata, Chairman and CEO of Sea Dragon commented : "We are extremely pleased to have closed on this facility with our relationship banks. This is a strong sign that both Sea Dragon and leading oil & gas financiers are taking a positive long term view on doing business in Egypt. We are pleased to be leading the way back into the market with this financing. Both BNP Paribas and HSBC have a significant presence in Egypt. We look forward to executing on our growth strategy with their support."

FORWARD LOOKING STATEMENTS

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 availability of the full amount of the facility, the use of funds derived therefrom and the ability of the Company to meet all future debt covenants and coverage rations 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.

SOURCE Sea Dragon Energy Inc.

For further information:

Said Arrata
Chairman, CEO and Director
+1(403) 457-5035

Tony Anton
President, COO and Director
+1(403) 457-5035

Olivier Serra
Chief Financial Officer and Director
+331 5343 9442

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Sea Dragon Energy Inc.

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