Sea Dragon Energy Inc (TSXV:SDX)

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SDX.V Operational Update August 27, 2012

CALGARY, ALBERTA, August 27, 2012 – Sea Dragon Energy Inc. (“Sea Dragon” or the “Company”) (TSX VENTURE: SDX) is pleased to announce the following operational update for its recent work program in Egypt.
NW GEMSA CONCESSION
The NW Gemsa concession is located onshore on the west side of the Gulf of Suez, some 300 km southeast of Cairo. Two main oil fields are producing light oil, the Al Amir SE field along with the Al Ola extension to the south and the Geyad field to the north.
Current production from the Al Amir SE and Geyad fields is approximately 9,100 bopd gross (910 bopd net to Sea Dragon). Cumulative production from the NW Gemsa Concession has now exceeded 8.9 million barrels of 42 degree API Crude oil.
Water injection is ongoing with three injectors currently operating at Al Amir SE Field and one injector at Geyad Field. Current injection rates are approximately 18,000 barrels per day at Al Amir SE and 3,800 barrels per day at Geyad. Cumulative injection to date is 4.4 million barrels at Al Amir SE and 1.0 million barrels at Geyad.
Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas at 50%, as operator and Circle Oil PLC with 40%.
Al Ola-3 Well:
This injection well, located in the southern part of Al Amir SE field, on the Al Ola development lease, was spud on July 16, 2012. The well is situated approximately 870 meters south of the Al Ola 1x well and 1,445 meters south east of Al Ola-2 well. The primary objective of this well is to provide injection support to the Kareem sands in Al Ola area. The well was drilled to total depth of 10,550 feet and both Shagar and Rahmi sands were cored and 22 feet of Shagar and 20 feet of Rahmi good quality sands were encountered. The future plan is to run casing and dually complete the well as a water injector.
KOM OMBO CONCESSION
The Kom Ombo Concession is located onshore in the southern part of Egypt some 1,000 km south of Cairo. It contains the Al Baraka oilfield, producing light oil from multiple reservoirs and an exploration area of 11,400 km².
Current production from the Al Baraka field is averaging approximately 550 bopd gross (275 bopd net to Sea Dragon).
Sea Dragon has a 50% working interest and is a joint operator of the Kom Ombo Concession with Dana Gas owning the remaining 50%.
West Al Baraka-2 Well:
The Abu Ballas Formation in this well was successfully fraced. During clean up the well tested 170 bopd. The well is currently shut in pending the declaration of commerciality and preparation of a Development Lease application before being placed on production.
Al Baraka-17 Well:
This step out well to AB-16 well was spud on July 28, 2012. AB-17 is located approximately 650 m to the south of AB-16 and was successfully drilled to a total depth of 7,527 m in the basement and logged. Oil shows were encountered in the Six Hills D and Kom Ombo C & A sands. Petrophysical analysis indicate the intervals are water bearing and the well was abandoned.
Total working interest production for the company is now averaging 1,185 bopd. The company is continuing its efforts in search of new growth opportunities with emphasis on Egypt and Sub-Saharan Africa.

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