Sea Dragon Updates on Kom Ombo Ops

Sea Dragon provided the following update on its Kom Ombo Operations in Egypt.

The Al Baraka No. 5 well has now been completed in the Six Hills "E" Formation in the interval 4352-4391 (39 feet). The well was put on test and is now producing at 300 bopd. The current rate is restricted by the capacity of the surface facilities. Additional well site storage facilities will now be installed to allow the well to produce at higher rates. The productivity of the Six Hills "E" Formation in this well appears to be sufficiently high so as not to require an immediate fracturing treatment.

In order to maximize field production and expedite the progress of the development program, a completion/work-over rig will be contracted and is expected to be mobilized along with the fracturing units to the Al Baraka field by Mid-August. The Al Baraka No. 6 well is scheduled as the first well in the fracturing campaign.

The Al Baraka No. 7 well was spud on July 21st and has now reached a depth of 3640 feet, a 9 5/8" casing string was run and the well is now drilling towards its target depth of 5200 feet in the six Hills Formation. Oil staining was observed in both the Abu Ballas and Six Hills Formation.

With the placement of the Al Baraka No. 5 well on stream, the Al Baraka field is now producing at a rate of 850 bopd gross.

The 418 km 2D Seismic program in the Kom Ombo Block to delineate and firm up eight prospects and leads was completed on July 15th. Processing has already commenced with the view of potentially drilling an exploratory well before year-end. Acquisition has also started on an additional 75 km seismic program in the unexplored NW Basin.

Sea Dagon has a 50% working interest in Jointly Operated Kom Ombo Block with Dana Gas Egypt owning the remaining 50%.

Commenting on the progress made to date on the Kom Ombo operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated, "I am pleased to see the Al Baraka No. 5 well intersecting the Six Hills "E" sands as these appear to be of good quality and high productivity. I am also confident that with the deployment of a second rig in Kom Ombo our efforts to accelerate the drilling program will result in a faster ramping up of production.

As I have stated previously our short term focus will continue to be on organic growth with the view of maximizing production and cash flow from our existing assets. I am also looking forward to the results of our seismic acquisition program which should help us explore the vast potential of the undrilled acreage in Kom Ombo."