Canadian minnow, Sea Dragon, has completed the previously announced sale of all of the issued and outstanding shares of its indirect wholly-owned subsidiary Sea Dragon Energy (Kom Ombo) Ltd. (“Kom Ombo”) for cash consideration of $6MM paid at closing.
The sale is part of a big portfolio rationalization. Sea Dragon completed the acquisition of National Petroleum Company Shukheir Marine Ltd. (“NPC SHM”) as of December 1, 2012, thus adding circa 500 BOPD from the Shukheir Bay and Gamma oil fields in the Gulf of Suez. Gross production from Kom Ombo, which it is now selling, averaged 490 BOPD in 2012 (245 BOPD net to Sea Dragon) with current rates averaging 495 BOPD gross (248 BOPD net to Sea Dragon).
Sea Dragon is selling its 50% participating interest in Kom Ombo to an unnamed, private company it simply calls “The Purchaser”. Adjustments in favour of the seller, estimated to be approximately $1.2MM, are also payable with the first installment having been paid at closing and the balance to be paid in three equal monthly installments, commencing November 25, 2013.
Kom Ombo Concession which is located in the southern part of the Arab Republic of Egypt, approximately 1000 km south of Cairo.
“The Kom Ombo year-end independent reserves report estimates Company Gross Proven and Proved plus Probable reserves of 0.38 and 1.29 million barrels of oil, respectively”, Sea Dragon states in its 2012 annual report.
Sea Dragon Energy, which is listed on the TSX Venture exchange, is focused on Egypt, where it has output of 1,900 BOEPD. “The Company is also continuing to search for attractive acreage in Africa, which could add significantly to the Company’s resources and reserves, and contribute towards its diversification strategy”, it says.