CALGARY, ALBERTA--(Marketwire - April 30, 2009) - Sea Dragon Energy Inc. (TSX VENTURE:SDX) -
NOT FOR DISTRIBUTION TO U.S NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
Sea Dragon Energy Inc. ("the Company"), an international junior oil and gas company, is pleased to announce its audited annual financial results for the twelve months ended December 31, 2008 and other disclosure documents.
ABOUT SEA DRAGON ENERGY INC.
The Company is focused on the exploring for and developing of oil and gas properties, primarily in the Gulf of Suez, Egypt, through the 75% working interest it holds in the East Wadi Araba concession agreement (EWA Concession) and is currently investigating and pursuing other ventures, primarily in Egypt.
Financial statements and accompanying MD&A are available on SEDAR.
All figures are quoted in Canadian dollars unless otherwise noted.
2008 ACHIEVEMENTS
During the year the company attained the following milestones:
- Completed its Initial Public Offering on July 15 and issued 58,333,334 common shares at $0.60 per share to raise proceeds of $30,924,447 net of share issuance costs.
- Commenced trading on the Toronto Venture Exchange under the stock symbol "SDX" on July 17, 2008.
- Acquired 100% of the common shares of Egypt Oil Holdings Ltd. through a share exchange transaction. This acquisition increased the Company's share from 40% to 75% of the East Wadi Araba concession ("EWA") in Egypt.
- Commenced drilling the 5-X well in the EWA concession, an off-shore well drilled by the Transocean 103 GSF jack-up rig, in partial fulfillment of its obligations under the EWA Concession Agreement.
- Pursued other investment opportunities, the results of which include:
-- entered into a Letter of Understanding on February 17, 2009 to pursue negotiations for the acquisition of the producing Ras El Ush concession in Egypt;
-- the purchase on December 12 of a $300,000 convertible debenture issued by Prevail Energy Inc., a private Canadian corporation with a joint venture interest in the Republic of the Congo.
RESULTS OF DRILLING AT THE EAST ARABA CONCESSION
On February 17, 2009 the Company announced that the Dahab North Prospect was drilled to a depth of 9,750 feet and was fully evaluated by drilling two well bores from the same surface location in order to test the Miocene and Pre-Miocene targets. Although the well encountered two separate reservoirs in the Kareem and Rudeis formation and hydrocarbons were encountered, the findings were determined to be uneconomic for further exploration or development and the well was plugged and abandoned. The GSF#103 drilling rig was released. As a result the Company has written-off $20,408,609 being the aggregate costs related to the acquisition of an interest in this concession and the direct and indirect drilling costs related to wells drilled in this concession. The Company is of the opinion that this operation completed its obligations under the Concession Agreement.
SELECTED FINANCIAL INFORMATION$C 000, except share and per share information 2008 2007 2006--------------------------------------------------------------------------------------------------------------------------------------------------------Unrestricted cash balance (overdraft) at year-end 16,733 4,452 (1)Working capital (deficiency) 10,096 (2,349) (581)Restricted cash 10,081 - -Capital expenditures 11,033 2,635 161Total assets 29,814 8,189 1,634Shareholders' equity 22,868 1,351 881 Share capital 44,444 1,948 1,237 Common shares outstanding Basic 144,509,405 40,747,500 34,632,500 Diluted 158,491,076 65,028,936 37,203,750 Weighted average common shares outstanding Basic 95,637,258 39,981,322 33,354,008 Diluted 96,128,549 Not available(1) Not available(1) Retained earnings (Deficit) (23,013) (1,686) (737)Cash flow from operations (1,832) (755) (157)Funds flow from operations(2) (1,488) (672) (277) Basic, per share(2)(3) ($0.015) ($0.017) (0.001)Net income (loss) (21,327) (948) (737) Basic, per share(3) ($0.22) ($0.02) ($0.02)--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Diluted weighted average number of common shares outstanding, which is calculated with respect to daily stock trading prices were not available until the Company's commons shares were listed on the Toronto Venture Exchange and stock prices became publicly available.(2) See the discussion concerning non-GAAP measures in the Management Discussion and Analysis for the year ended December 31, 2008, dated April 14, 2008.(3) Funds flow from operations per share and Net income per share are not calculated on a diluted basis as they are anti-dilutive.