Sea Dragon Energy Inc.
TSX VENTURE : SDX

Sea Dragon Energy Inc.

November 13, 2008 16:03 ET

Sea Dragon Announces Successful Result of Court Application for Stay of Litigation Proceedings

CALGARY, ALBERTA--(Marketwire - Nov. 13, 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) has announced today the successful result of a court application (the "Application") made on the Company's behalf in respect of the previously disclosed litigation commenced on May 30, 2008 against the Company, among others (the "Defendants") (the "Action") by TransPacific Petroleum Corp. and Ghareeb Awad (the "Plaintiffs").

The Application was made on November 10, 2008 to the British Columbia Supreme Court (the "Court") on the grounds that the Plaintiffs did not have a legal right to initiate a court action against the Company in respect of a contractual dispute involving the East Wadi Araba Concession (the "EWA Concession") in Egypt. The basis for such position was a series of contracts (the "Contracts") relating to the EWA Concession wherein the parties had agreed to resolve any disputes arising from the Contracts by arbitration, not though court proceedings. The Court agreed with the submissions made on behalf of the Company and ordered a stay of proceedings with respect to the Action against the Company and another Defendant. The Court further ordered that the Plaintiffs pay court costs of the Application forthwith to each of the Company and another Defendant.

As a result of the Court's ruling, the matter will now move to arbitration in Alberta if it is pursued by the Plaintiffs involved.

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. 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.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy common shares of the Company 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.

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 EWA Concession pursuant to the deed of assignment awarded by the Arab Republic of Egypt and Egyptian General Petroleum Corporation 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 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
    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