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Thursday, September 12, 2013
Sea Dragon Energy is exiting its holding in Upper Egypt. The company entered into a share purchase agreement with a private company to sell all of the issued and outstanding shares of its indirect wholly-owned subsidiary Sea Dragon Energy (Kom Ombo). Under the deal Sea Dragon will receive a cash consideration of $6 million, to be paid at closing, plus adjustments in favor of Sea Dragon estimated to be around $1.2 million, to be paid in four equal monthly installments, commencing the month following closing.
Sea Dragon owns a 50% participating interest in the Kom Ombo Concession. The concession, which was acquired in April of 2010, consists of two producing fields, Al Baraka and West Al Baraka, and produces about 412 bpd of oil, 206 net to Sea Dragon.
Said Arrata, chairman of Sea Dragon commented on the acquisition transaction: “The company has recently completed a review of both its strategy and existing asset portfolio. As a result, Kom Ombo was no longer core and the decision was made to sell it. The funds generated from this sale will be reinvested into our Gulf of Suez Fairway producing assets where we recently acquired the Shukheir Marine concession. It has been exciting to open a new area of production in Egypt with these two exploration discoveries in Kom Ombo but given our new focus these assets are better suited for another company’s portfolio. I look forward to reporting on the future investments we make from these funds in due course.”
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