Dover Petroleum Corp. announced that the company has signed an agreement of purchase and sale and a related share exchange agreement with Sea Dragon Energy Inc. and Egypt Oil Holdings Ltd. This will complete the exchange of its 11% interest in the East Wadi Araba (EWA) Egyptian Oil Concession in Gulf of Suez to Sea Dragon Energy Inc. in exchange for 3,666,667 common shares of Sea Dragon. Dover will continue to effectively have an interest in the EWA Concession and the future drilling campaigns planned through its approximate current 4% share ownership of Sea Dragon shares. Sea Dragon and Dover have formally executed the Agreement of Purchase and Sale and related share exchange agreements on April 24th, 2008.
Both Dover and Sea Dragon have registered all Specific Conveyances required to be submitted to the EGPC and have been provided with a Deed of Assignment to Sea Dragon for 75% ownership of EWA oil Concession.
Sea Dragon and Egypt Oil are preparing to drill the initial 2 wells on the EWA concession offshore targets and plan to spud the first two wells in the next 14 months in order to meet the EGPC and concession requirements.
Dover’s wholly owned subsidiary, Slater Dome Inc. is also pleased to announce production and field development updates. Gross production at the Slater Dome CBM Field in Wyoming and Colorado has averaged 1.2 million cubic feet per day during the first 20 days in March 2008.
Annual gross production at the Slater Dome Field increased approximately 228% compared to fiscal year ended February 28, 2007. Revenue for March 2008 was $71,250 compared to revenue for March 2007 which was $15,400 which represents an increase of 463%. The increased production and revenues at the Slater Dome project are primarily a result of additional recompletions in certain older producing wells initiated during last summer and fall and an increase in the price received for the gas sold.
Our joint venture partner, New Frontier Energy is in the final stages of bringing six of the eight new wells drilled during 2007 into production. The new compression equipment at the Slater Dome Field has been installed and production from the new wells is being brought on stream expeditiously. Dover is optimistic that these wells will add further to the production stream within the next 20 days and will likely provide further increases to the company’s revenues.
A recent halt in the trading of the shares of Dover Petroleum Corp. for lack of financial filling and disclosure is being addressed and the management is in the process of rectifying the situation.