Sea Dragon Energy Inc. announced that it has entered into an agreement with a syndicate of underwriters, co-led by GMP Securities L.P. and Thomas Weisel Partners Canada Inc. and including Genuity Capital Markets, FirstEnergy Capital Corp. and Maison Placements Canada Inc. pursuant to which the underwriters have agreed to purchase on a bought deal basis pursuant to a short form prospectus 112,500,000 common shares (“Common Shares”) at a price of $0.40 per Common Share for gross proceeds to Sea Dragon of approximately $45 million (the “Offering”).

Proceeds of the Offering will be used by Sea Dragon to pay the balance of the consideration of approximately US$35 million due to Dana Gas Egypt Ltd. (“DGE”) in connection with Sea Dragon’s recent acquisition of a fifty (50%) percent participating interesting the Kom Ombo (Block-2) Concession located approximately 1,000 kilometers south of Cairo in the West Bank of the Nile River, to pay its share of past and future exploration and development costs on the Kom Ombo Concession and for general working capital.