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IPR Energy buys into South Disouq Concession onshore Egypt

18th August 2014

Sea Dragon Energy has entered into an agreement with IPR Energy Resources to farm-out a 45 per cent participating interest in the South Disouq Concession, located in the Nile Delta, Egypt

IPR Energy buys into South Disouq Concession onshore Egypt
Sea Dragon will have a 55 per cent interest in the concession, with IPR holding the remaining 45 per cent

The South Disouq concession comprises 1,275 square kilometres of acreage in the Nile Delta of Egypt and is anticipated to contain significant gas potential. It is located within the prolific Abu Madi-Baltim trend, which currently contains 10 discoveries, containing 6.3Tcf of gas and 100 MMbo of liquids.

“This agreement is an important milestone for the development of the South Disouq concession, which in itself is a key asset for the company, representing significant exploration upside potential in an area the Sea Dragon management team have had proven success,” said Paul Welch, CEO of Sea Dragon. “The farm-out will also provide Sea Dragon with the financial flexibility to continue to develop and invest resources across our wider Egyptian asset base. We look forward to working with IPR to explore for the significant potential within this concession.”

Under the terms of the agreement IPR will carry the cost of the 1st Phase Commitment well, subject to a cap, pay USD 1.9m of the signature bonus, fund its proportionate share of the remaining work program and will have the option to operate the commitment well.

This agreement remains subject to final approval by the regulatory authorities in Egypt. Post approval, Sea Dragon will have a 55 per cent interest in the concession, with IPR holding the remaining 45 per cent.

Sea Dragon will continue to be the operator.

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