Sea Dragon Energy Inc.
TSX VENTURE : SDX

Sea Dragon Energy Inc.

November 26, 2008 09:27 ET

Sea Dragon Announces Commencement of Drilling Dahab North Prospect

CALGARY, ALBERTA--(Marketwire - Nov. 26, 2008) -

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

Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE:SDX) is pleased to announce that the Company has commenced drilling of its Dahab North prospect in the East Wadi Araba ("EWA") Concession. The EWA Concession covers 193 square kilometres, or approximately 47,691 acres (35,768 net acres), located off-shore in the Gulf of Suez, Egypt. The Gulf of Suez currently accounts for 50% of Egypt's total oil and gas production of 660,000 boepd.

As referenced in the Company's news release dated November 3, 2008, Sea Dragon now has the Transocean GSF Rig 103 set up and has now commenced drilling its Dahab North prospect. Key attributes to the Dahab North prospect and the EWA Concession as outlined in the Sea Dragon Prospectus dated July 3, 2008 under The EWA Concession; Statement of Reserves Data and Other Oil and Gas information and Summary of Estimated Prospective Resources in the EWA Concession include:



- Prospective Resources - Best Estimate (NI 51:101);
- Total Development Well Count - 5;
- Initial Rate / Well (STB/d) - 4,500;
- Undiscovered Petroleum Initially In Place ("PIIP"), Thousand Stock Tank
Barrels ("MSTB") - 161,270;
- The recovery factor of reservoir oil in this area is one of the highest in
the world and might reach 45-50% on primary recovery as a result of three
main factors:
1. very active water drive;
2. good quality, laterally extensive, reservoirs; and
3. higher than normal reservoir pressures and temperatures.
- The gravity of the oil from each prospective reservoir is estimated to be
22-25 API;
- Productive hydrocarbon zones are expected to be encountered at depths of
2200 metres or less;
- Multiple target reservoirs of the Kareem, Rudeis and Nukul formations; and
- The Gulf of Suez has a well-developed infrastructure in place to transport
oil to market.


"We are excited to announce the spudding of our Dahab North offshore drilling prospect. With an anticipated timeframe of 45 - 60 days, we expect to be at total depth in Q1'09. Given the historical production in the adjacent Warda Field combined with our extensive seismic information, we look forward to the potential of our first prospect" stated David Thompson, Sea Dragon's president and chief executive officer.

For further information please see the website of the Company at www.seadragon.ca or the Company's filed documents at www.sedar.com.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading Risk Factors and elsewhere in the Company's filings with Canadian securities regulators. Specifically that there is no assurance that any hydrocarbon reserves will be discovered nor is there any assurance that any hydrocarbons encountered will be in commercially recoverable quantities. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and expect as may be required by applicable securities laws.

Sea Dragon is an international exploration and development company with oil and gas interests in the Gulf of Suez, Egypt. The Company holds a 75% working interest in the East Wadi Araba Concession ("EWA Concession") pursuant to the deed of assignment awarded by the Arab Republic of Egypt and Egyptian General Petroleum Corporation ("EGPC") for the purposes of the exploration and exploitation of petroleum.

The TSX.V Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Sea Dragon Energy Inc.
    David Thompson
    President, CEO and Director
    (403) 629-5850
    or
    Sea Dragon Energy Inc.
    Parvez Tyab
    Executive Vice President and Director
    (403) 971-3936
    Website: www.seadragon.ca
    or
    Brisco Capital Partners
    Scott Koyich
    President
    (403) 262-9888
    Email: skoyich@briscocapital.com
    or
    Brisco Capital Partners
    Graeme Dick
    (403) 561-8989
    Email: graeme@briscocapital.com