Sea Dragon Energy Inc.

Sea Dragon Energy Inc.

July 15, 2008 11:38 ET

Sea Dragon Announces Closing of Initial Public Offering

CALGARY, ALBERTA--(Marketwire - July 15, 2008) -

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

Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") is pleased to announce it has today closed its initial public offering ("IPO") of common shares ("Shares"), raising gross proceeds of $35,000,000. A total of 58,333,334 Shares were issued at a price of $0.60 per Share. Upon closing of the IPO, its outstanding $7.5 million principal amount of convertible debentures were automatically converted into 21,428,571 Shares. Following closing of the IPO and the conversion of the outstanding convertible debentures, Sea Dragon has 144,509,405 common shares outstanding. Salman Partners Inc., Thomas Weisel Partners Canada Inc. and Fraser Mackenzie Limited (the "Agents") acted as agents for the IPO. The Company has also granted to the Agents an option to purchase additional Shares, at $0.60 per Share, equal to 15% of the number of Shares sold pursuant to the IPO for a period expiring 30 days following the closing of the IPO, to cover over-allotments, if any, and for market stabilization purposes.

The Shares are expected to begin trading on the TSX Venture Exchange under the symbol SDX on July 17, 2008.

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 EWA Concession covers 193 square kilometres, or approximately 47,691 acres (37,768 net acres), located in mainly shallow water off-shore in the Gulf of Suez, Egypt.

The net proceeds of the IPO will be used to fund exploration activities in the EWA Concession and for working capital purposes.

The estimates of prospective resources attributable to EWA Concession were prepared by Chapman Petroleum Engineering Ltd. as of January 1, 2008 and conform to NI 51-101 standards (the "Chapman Report"), as described in the table below. The Chapman Report estimated gross and net attributable prospective resources, based upon a Monte Carlo simulation of the estimated input parameters, such as trap size, reservoir net pay and porosity water saturation and recovery factor.



Ultimate Gross Company Share
Description Petroleum Initially Recoverable Oil In Recoverable Oil
In Place Place In Place
(MSTB) (MSTB) (MSTB)
--------------------------------------------------------------------------
Best Estimate (P50) 527,950 132,012 33,718
Low Estimate (P90) 234,078 58,531 15,781
High Estimate (P10) 1,006,247 251,607 62,165


The Company's senior management team includes David Thompson, President, Chief Executive Officer and Director, Parvez Tyab, Executive Vice President and Director, Ahmed Moaaz, Country Manager and Director, Dr. Barry Wood, Vice President, Geology, and Jeff Ratcliffe, Chief Financial Officer. The Board of Directors is composed of Said Arrata, David Thompson, Parvez Tyab, Ahmed Moaaz, David Wilson and Barry Swan.

Said Arrata, Chairman and Director, served as Chairman and Chief Executive Officer of Centurion Energy International Inc. ("Centurion Energy") until its purchase by Dana Gas PJSC, where he still serves as a board member of the corporation. Mr. Arrata built Centurion Energy into a billion dollar corporation, with a peak production of 40,000 boepd, operating internationally in Egypt, Tunisia and with holdings in Sao Tome Principe. During more than 40 years in the oil and gas industry, Mr. Arrata held management positions with major oil and gas companies in Canada and overseas. Mr. Arrata received his bachelors of science at the Cairo University in 1964. Mr. Arrata was founder and Chief Executive Officer of two major engineering firms as well as two oil and gas companies, operating in Canada and internationally, for more than two decades.

David Thompson, President, CEO & Director, has over 25 years of financial experience in the oil and gas industry. He joined the Larmag Group of Companies in 1983 and established the oil trading company Larmag Energy Trading Limited ("Larmag") based in Bermuda with offices in the US and Europe (Geneva, Moscow and Amsterdam). Larmag traded both downstream products as well as crude oil. Mr. Thompson was appointed Senior Vice President when he became the finance director for Larmag operating in Turkmenistan in 1992. In Turkmenistan, Mr. Thompson acted as Chief Executive Officer and was responsible for developing a team of oil field professionals to run the Cheleken, Turkmenistan Operations which was initially producing 8,000 boepd. During his tenure, Larmag developed the field and increased production to over 15,000 boepd through implementing new technologies available to the company. Mr. Thompson is a Certified Management Accountant (1988) and is on the board of a number of mutual fund companies as well as charities.

Ahmed Moaaz, Country Manager & Director, has over 30 years experience in the oil and gas industry. Mr. Moaaz was the Vice President, Operations of Trident Petroleum International, an international oil company until 2006, which currently operates in Egypt and has a joint venture with the EGPC operating a field in the Red Sea coast. His background consists of supervising and directing drilling production and petroleum engineering as former Chairman El Wastani Petroleum Company, a joint venture between the Egyptian Natural Gas Holding Company and Centurion Energy. Mr. Moaaz was also a former Deputy Chairman for Production of EGPC where he was responsible for supervising and directing drilling production and petroleum engineering of all joint venture companies operating in Egypt. Mr. Moaaz was a director and has also supervised the operations of Suez Esso Petroleum Company. Mr. Moaaz has a B.Sc. in Petroleum Engineering from Cairo University (1971).

Parvez Tyab, Executive Vice President & Director, has an extensive background in venture capital financing over the past 20 years. As an independent consultant and venture capitalist, he has assisted a number of companies in relation to their financing and development.

Barry Swan, Director, earned his Chartered Accountant designation in 1971. During his professional and entrepreneurial career in the oil industry spanning 38 years, Mr. Swan has held key management positions with Canadian based energy companies with operations in the North Sea, Argentina, Bolivia, Peru, Indonesia, Cambodia, UAE, Tunisia, Egypt, USA and Canada. He is the founder of two companies, one private and one public that were vended into a predecessor company of Centurion Energy where Mr. Swan was Senior Vice President, Chief Financial Officer and a director from its inception in 1997 to the time it was sold in January, 2007. Centurion Energy was grown to have a market capitalization over $1 billion and reached a daily production level of approximately 40,000 boepd. Mr. Swan is currently the President and a director of a family owned private company which holds nonoperated working interests and royalty interests in natural gas fields in Alberta.

David Wilson, Director, has over 35 years experience in the oil and gas industry. Mr. Wilson has been on the board of directors of many oil and gas companies, including Nations Energy Corporation, Nations Energy Company Ltd., Tartan Energy (Canada) Ltd., Tracer Petroleum Corporation and Kyrgoil Corporation. Mr. Wilson has also held senior management positions in various oil and gas companies in Canada, including Security Energy Corporation, Fore Shore Petroleum, OMV (Canada) Ltd., and Petro-Canada Inc. Mr. Wilson has a B.S.c. (Geology) from the University of British Columbia (1969).

Dr. Barry Wood, Vice President Geology, has over 33 years experience in the oil and gas industry, including 16 years with Marathon Oil in various positions such as Exploration Manager, Egypt. Currently, he is the founder and director of PetroQuest International Ltd., a UK based company specializing in identifying and developing exploration fairways, prospect mapping and assisting in development work. Dr. Wood also acts as an international consultant advising on exploration strategies, risks and development plans in North and East Africa, the Middle East and South East Asia. He has also conducted a three-year research project on Basin Evolution of North Africa and the northern Middle East to understand reservoir and trap development in that region. Dr. Wood has a Doctorate of Philosophy from Oxford University (2001), a B.Sc. Honours from Queen's University (1972) and a B.A. from Queen's University (1969).

Jeffrey Ratcliffe, Chief Financial Officer, has three years of financial experience including accounting positions with Athena Acquisitions Ltd. which performed the accounting for several TSXV publicly traded companies including Capella Resources Ltd., Alcor Resources Ltd., Previa Resources Ltd, as well as several other private companies. Prior to being appointed Chief Financial Officer of Sea Dragon, Mr. Ratcliffe worked in the capacity of accountant for Mogul Energy International Inc. ("MEII"), and was involved in taking MEII public on the OTC Bulletin Board. Mr. Ratcliffe graduated with a bachelors degree in economics from the University of Victoria in 1994 and is currently working towards his designation as a Certified General Accountant.

For further information please see the final prospectus of the Company dated July 3, 2008 filed on SEDAR at http://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. Such information contained herein represents management's best judgement 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 Shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration, or an applicable exemption therefrom. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Shares in any jurisdiction. This news release may contain forward-looking statements concerning the anticipated performance of the Company. Forward-looking statements are based on the estimates and opinions of management at the date the statements are made, and the Company undertakes no obligation to update forward-looking statements if conditions or opinions should change. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sea Dragon Energy Inc.
    David Thompson
    (403) 629-5850
    or
    Sea Dragon Energy Inc.
    Parvez Tyab
    (403) 971-3936