Sea Dragon Energy Inc.
TSX VENTURE : SDX

Sea Dragon Energy Inc.

May 03, 2010 09:55 ET

Sea Dragon Energy Inc.: 2009 Annual Results

CALGARY, ALBERTA--(Marketwire - May 3, 2010) -

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

Sea Dragon Energy Inc. ("Sea Dragon") (TSX VENTURE:SDX) today filed its Annual Information Form (the "AIF"), audited consolidated financial statements and related management's discussion and analysis for the year ended December 31, 2009 with Canadian securities regulatory authorities. The Company has also filed a Reserves Data and Other Oil and Gas Information for the year ended December 31, 2009, which contains additional information on Huntington's reserves as required under National Instrument 51-101 Standards of Disclosure for oil and Gas Activities.

Copies of the filed documents may be obtained through Sea Dragon's web site at www.seadragonenergy.com, through SEDAR at www.sedar.com.

Sea Dragon Energy Inc. is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt.

During the year ended December 31, 2009, Sea Dragon achieved the following:

  • On December 21, 209 the Company completed the acquisition of the entire issued capital of Premier Oil Overseas BV. The acquired company owns a 10% working interest in the on-shore North West Gemsa Concession ("NW Gemsa"), Eastern Desert, Egypt, which includes development and exploration rights. 

  • On November 6, 2009 the Company completed a private placement of 60,000,000 units at $0.25 per unit. Each unit consists of one common share and one half share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.50 for a period of 36 months from the closing date of the offer. Gross proceeds raised were $15.0 million and the net proceeds of $14,245 after all related costs have been deducted will be used to fund the acquisition of Premier Egypt (NW Gemsa) B.V.

  • On December 31, 2009, the Company, through its wholly-owned subsidiary, Sea Dragon Energy (Kom Ombo) Ltd. entered into a farmout agreement with Dana Gas Egypt for the acquisition of a fifty (50%) percent participating interest in the Kom Ombo Concession, Egypt.

  • In February 2009 the Company completed drilling of the North Dahab Prospect (the 5-X well), on the East Wadi Araba ("EWA") concession in Egypt. The well encountered two separate reservoirs in the Kareem and Rudeis formations and hydrocarbons were encountered. As the hydrocarbons did not meet the Company's economic criteria the well was plugged and abandoned. The joint venture has decided to not pursue any additional exploration activities and instead it relinquished the concession on July 17, 2009.

Selected annual information            
             
$C 000, except share, per share information and production results 2009   2008   2007  
Total Operations            
Average Daily Production volumes (Bopd) 614   0   0  
Average Daily Sales Volume (Bopd) 617   0   0  
Average Price ($US/Bopd) (1) 72.39   0   0  
Oil production, gross (bbls) (1) 6,143   0   0  
Unrestricted cash balance at year-end 2,092   16,733   4,452  
Working capital (deficiency) 3,432   12,175   (2,350 )
Restricted cash 325   10,081   -  
Capital expenditures 11,853   13,245   2,635  
Total assets 22,229   29,814   8,819  
Shareholders' equity 21,168   22,868   1,351  
Share capital 54,942   44,444   2,976  
Common shares outstanding            
  At year end 206,131,405   144,509,405   40,747,500  
  Diluted 253,741,076   158,491,076   65,028,936  
Weighted average common shares outstanding            
  Basic 153,717,257   95,637,258   39,981,322  
  Diluted 153,738,451   96,128,549   Not available (2 )
(Deficit) (39,848 ) (23,013 ) (1,686 )
Cash flow used in operations (2,847 ) (223 ) (755 )
Funds flow from (used in) operations(3) (5,123 ) 107   (672 )
  Basic, per share(3)(4) ($0.033 ) $0.001   ($0.017 )
Loss (16,835 ) (21,327 ) (948 )
  Basic, per share(4) ($0.110 ) ($0.223 ) ($0.024 )

For further information please see the website of the Company at www.seadragonenergy.com 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.

The TSX.V Venture Exchange has neither approved nor disapproved of the information contained herein. The TSX.V Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sea Dragon Energy Inc.
    Said Arrata
    President, CEO and Director
    (403) 457-5035
    or
    Sea Dragon Energy Inc.
    David Thompson
    Senior Vice President and Director
    (403) 457-5035
    or
    Brisco Capital Partners
    Scott Koyich
    President
    (403) 262-9888
    skoyich@briscocapital.com
    or
    Brisco Capital Partners
    Graeme Dick
    (403) 561-8989
    graeme@briscocapital.com