Sea Dragon, Dana Gas to Spin Bit on Al Baraka

Sea Dragon provided an operational update on its activities in Kom Ombo Concession in Egypt.

Kom Ombo Concession

The Egyptian Chinese Drilling Company (ECDC) rig # 1 has been contracted to drill up to 10 wells on the Al Baraka field. ECDC rig #1 is equipped with a top drive and is rated to 10,500 feet and therefore capable of drilling and evaluating the Kom Ombo Basin entire geological sections. The rig is currently mobilized with Al Baraka 5 and 6 locations being prepared to receive the rig. The first well, Al Baraka 6 is expected to spud before the end of April. Sea Dragon's first appraisal well will be targeting the Abu Ballas and Six Hills "E" and "F" zones. An extensive coring and logging program is planned to adequately evaluate all the potential reservoirs. Once drilling operations at Al Baraka 6 are completed the rig will move to Al Baraka 5 well location 2Km to the northwest.

A new 450 Km 2D seismic program, to firm up several prospects and leads, has been designed and scouting of the seismic lines has started. Contract negotiations with state-of-the-art crew available in the general area is being finalized and applications for various approvals submitted. Assuming various approvals are timely received we plan to start the seismic acquisition in May. Sea Dragon has a 50% working interest in the Kom Ombo Concession, which it is jointly operated with Dana Gas Egypt.