NewsSea Dragon Announces the Completion of the Acquisition of Premier Oil Egypt (NW Gemsa) B.V.
17:01 EST Monday, December 21, 2009
CALGARY, ALBERTA--(Marketwire - December 21, 2009) -
Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSXVENTURE:SDX) has completed the acquisition of all of the issued andoutstanding shares of Premier Oil Egypt (NW Gemsa) B.V.
The acquisition, which was announced on August 19, 2009 when SeaDragon signed a sale and purchase agreement with Premier Oil OverseasB.V, gives Sea Dragon a 10% working interest in the NW GemsaConcession, located approximately 300 km south east of Cairo. The othertwo partners in the concession are the operator, Vegas Oil and Gas S.A.(50% working interest) and Circle Oil Plc (40% working interest).
The effective date of the acquisition is July 1, 2009. The totalconsideration paid of $US 14.7 million includes the purchase price of$US 12.5 million plus working capital adjustments to December 21, 2009.The Company is entitled to receive its 10% share of production revenuesafter July 1, 2009. For the months of July to October, Sea Dragons'share of net revenues after taxes and royalties totalled $US1.0 million.
The NW Gemsa concession is in the midst of a nine well developmentprogram of the Al-Amir and Geyad areas. Five wells have been broughtonto production in the Al-Amir and Geyad development leases sinceFebruary 2009 and gross daily production reached 6,170 bopd inNovember. Cumulative production from the concession since it beganproducing in February 2009 is now over one million barrels. The sixthwell in the concession is in progress and three more wells are to becompleted before the end of 2010.
Commenting on the closing of the acquisition Premier Oil Egypt (NWGemsa) B.V. and Sea Dragon's involvement in the NW Gemsa property, Mr.Said Arrata, Chairman and CEO said:
"We are very pleased to have concluded this acquisition. The NWGemsa property is very exciting for us and we have high expectationsfor the completion of the development program and possible additionalexploration potential."
For further information please see the website of the Company atwww.seadragonenergy.com or the Company's filed documents atwww.sedar.com.