LONDON, Aug. 18, 2014 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE: SDX), an oil & gas exploration and production company with assets in Egypt, is pleased to announce it has entered into an agreement with IPR Energy Resources, Ltd ("IPR") to farm-out a 45% participating interest in the South Disouq Concession, located in the Nile Delta, Egypt.
The South Disouq concession comprises 1,275 km² of acreage in the Nile Delta of Egypt and is anticipated to contain significant gas potential. It is located within the prolific Abu Madi-Baltim trend, which currently contains 10 discoveries, containing 6.3Tcf of gas and 100 MMbo of liquids.
Under the terms of the agreement IPR will carry the cost of the 1st Phase Commitment well, subject to a cap, pay $1.9 MM of the signature bonus, fund its proportionate share of the remaining work program and will have the option to operate the Commitment well.
IPR is a privately held company based in Dallas, TX - USA with exploration and production assets in Egypt, USA, and Pakistan. IPR has been active in Egypt for over 30 years and currently has operations and equity interests in 6 concessions. It also has a global upstream consulting business and an oil field services division in Egypt.
This agreement remains subject to final approval by the regulatory authorities in Egypt. Post approval, Sea Dragon will have a 55% interest in the concession, with IPR holding the remaining 45%. Sea Dragon will continue to be the operator.
Commenting, Paul Welch, CEO of Sea Dragon, said:
"This agreement is an important milestone for the development of the South Disouq concession, which in itself is a key asset for the Company, representing significant exploration upside potential in an area the Sea Dragon management team have had proven success. The farm-out will also provide Sea Dragon with the financial flexibility to continue to develop and invest resources across our wider Egyptian asset base. We look forward to working with IPR to explore for the significant potential within this concession".
About Sea Dragon Energy Inc.
Sea Dragon is an international exploration and development oil company with a focus on North Africa and the Middle East. Activities are currently concentrated in Egypt, with interest in 4 concessions with short and long term potential. For further information please see the website of the Company at www.seadragonenergy.com or the Company's filed documents at 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. 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 should be viewed as forward-looking statements. In particular, statements concerning the 2014 drilling and capital expenditure programs of the NW Gemsa, Shukheir Marine, South Disouq and South Ramadan Concessions and the results referenced or implied herein should be viewed as forward-looking statements. All reserves information contained herein as well as the net present value of such reserves should be considered as forward looking statements. The forward-looking statements contained in this document are based on certain assumptions and although management considers these assumptions to be reasonable based on information currently available to it, undue reliance should not be placed on the forward-looking statements because the Company can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated 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 development and political, social and other risks inherent in carrying on business in Egypt. See Sea Dragon's Annual Information Form for the year ended December 31, 2012 for a description of the risks and uncertainties associated with the Company's business, including its exploration activities. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law.The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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SOURCE: Sea Dragon Energy Inc.
For further information: Sea Dragon Energy Inc., Paul Welch, President and Chief Executive Officer, Tel: +44 203 219 5640; Olivier Serra, Chief Financial Officer, Tel: +44 203 219 5640; Bell Pottinger (Financial PR), Philip Dennis / Joanna Boon, Tel: +44 (0) 207 861 3232; Brisco Capital Partners Corp. (Investor Relations), Scott Koyich, Tel: +1 (403)262.9888