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CALGARY, Sept. 10, 2013 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE: SDX) announces that it has entered into a share purchase agreement (the "Agreement") dated September 9, 2013 with a private company (the "Purchaser") to sell all of the issued and outstanding shares of its indirect wholly-owned subsidiary Sea Dragon Energy (Kom Ombo) Ltd. ("Kom Ombo") for cash consideration of US$6 million, to be paid at closing, plus adjustments in favour of Sea Dragon estimated to be approximately US$1.2 million, to be paid in four equal monthly installments, commencing the month following closing (the "Disposition").
Sea Dragon owns a 50% participating interest in the Kom Ombo Concession which is located in the southern part of the Arab Republic of Egypt, approximately 1000 kms south of Cairo. The concession, which was acquired in April of 2010, consists of 2 producing fields, Al Baraka and West Al Baraka produces approximately 412 BOPD of which 206 is net to Sea Dragon. Management estimates of the concession reserves as of year-end 2012 were approximately 1.3 mmbbls of which 0.65 mmbbls was net to the Company.
Said Arrata, Chairman of Sea Dragon commented on the acquisition transaction: "The Company has recently completed a review of both its strategy and existing asset portfolio. As a result, Kom Ombo was no longer core and the decision was made to sell it. The funds generated from this sale will be reinvested into our Gulf of Suez Fairway producing assets where we recently acquired the Shukheir Marine concession. It has been exciting to open a new area of production in Egypt with these two exploration discoveries in Kom Ombo but given our new focus these assets are better suited for another company's portfolio. I look forward to reporting on the future investments we make from these funds in due course."
The Disposition is subject to the receipt of all necessary regulatory, stock exchange and other third party consents (including the consent of Sea Dragon's lender) and satisfaction of other closing conditions that are customary for a transaction of this nature. It is anticipated that closing of the Disposition will occur on or about September 30, 2013.
About Sea Dragon Energy Inc.
Sea Dragon is an international exploration and development oil company with a focus on the Middle East and Africa. Activities are currently concentrated in Egypt, with interest in four 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.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, in any province or territory of Canada or in any other jurisdiction.
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.
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains certain statements or disclosures relating to Sea Dragon that are based on the expectations of Sea Dragon as well as assumptions made by and information currently available to Sea Dragon which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Sea Dragon anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "will", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", "pro-forma", or other comparable terminology. In particular, this press release makes reference to the estimated amount of the adjustments to the purchase price and timing of closing of the Disposition. Many factors could cause the performance or achievement by Sea Dragon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include changes to estimated purchase price adjustments, delays or failures to obtain the necessary approvals and consents and general economic and the possibility that the Disposition may not be completed. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The Company is not under any duty to update any of the forward-looking statements after the date of this press release or to conform such statements to actual results or to changes in the Company's expectations and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
SOURCE: Sea Dragon Energy Inc.
For further information:
Sea Dragon Energy Inc.
President and Chief Executive Officer
Tel: +331 5343 9442
Chief Financial Officer and Director
Tel: +331 5343 9442
Bell Pottinger (Financial PR)
Philip Dennis / Joanna Boon
Tel: +44 (0) 207 861 3232
Brisco Capital Partners Corp. (Investor Relations)
Tel: +1 (403) 262.9888