Sea Dragon acquires National Petroleum Egypt for $130M

Sea Dragon Energy has signed an agreement with Golden Crescent Investments Ltd to acquire 100% of National Petroleum Company Egypt Ltd (NPC Egypt) for $147.5 million, of which $60 million payable in cash and the remaining $87.5 million in shares. NPC Egypt’s working capital as at 30-Sep-2011 was $17.88 million. The net deal value including cash payment, stock and working capital surplus is $129.62 million. In addition, Sea Dragon has agreed to grant to Golden Crescent 20% after payout net profits interest from production attributable to the Muzhil field (located in the SAZ concession) and 17.5% after payout net profits interest from production attributable to the balance of the SAZ concession.

Asset highlights:

• 100% interest in South Abu Zenima (SAZ) concession: 91.3 MMbbl of prospective resources. Includes the Muzhil field (production expected to start in Q1-2013 at 6.2 Mbbl/d) and SAZ-2 prospect;
• 100% interest in Shukheir Marine concession: 0.66 Mbbl/d of production from the Shukheir Bay (0.6 Mbbl/d) and Gamma fields (0.06 Mbbl/d);
• 100% interest in North El Magahara concession: 16.6 MMBOE of prospective resources;
• 100% interest in East Kheir concession awaiting government approval;
• 12.75% non-operated interest in the South Ramadan concession;
• Approximately 9.4 MMbbl of Proved plus Probable Reserves.