/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
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.