Sea Dragon announces mutual termination of agreement with Golden Crescent

    




 /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN  THE UNITED STATES/ 

 CALGARY, July 23, 2012 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon")  announces that Sea Dragon and Golden Crescent Investments Ltd. ("Golden Crescent") have entered into a termination agreement (the "Agreement") pursuant to which Sea Dragon and Golden Crescent have mutually agreed  to terminate the Second Amended and Restated Share Purchase Agreement  dated May 10, 2012 between Sea Dragon and Golden Crescent in respect of  the acquisition, directly or indirectly, by Sea Dragon of all of the  issued and outstanding shares of National Petroleum Company Egypt  Limited (the "Acquisition"). In accordance with the terms of the Agreement, the remaining US$2  million of the deposit which Sea Dragon previously paid into escrow  shall be returned in full to Sea Dragon. 

 In light of the uncertainty regarding the date on which the Acquisition  could be completed, Sea Dragon and Golden Crescent decided jointly to  terminate the Agreement and not to proceed with the Acquisition. Prior to the decision to terminate the Agreement being reached by the  parties, Sea Dragon had made arrangements for financing with banks and  private equity funds to provide for sufficient funds to allow the  Acquisition to close as planned. 

 As Sea Dragon will no longer be issuing common shares or preferred  shares of Sea Dragon to Golden Crescent as partial consideration for  the purchase price of the Acquisition, Sea Dragon will not be  proceeding with the proposed share consolidation of its common shares  ("Consolidation") which was approved by the Sea Dragon shareholders at the special  meeting held on April 30, 2012.  In the event that Sea Dragon  shareholders forwarded share certificates to Sea Dragon's transfer  agent, Equity Financial Trust Company, in anticipation of the  completion of the Consolidation, such certificates will be returned to  the shareholder as soon as practicable. 

 Based on current funds available to Sea Dragon and ongoing cash flow  from its existing operations, Sea Dragon believes it will have adequate  working capital to fund its scheduled capital programs for the balance  of 2012 and into 2013. Sea Dragon continues to investigate  opportunities for the expansion of its asset base. 

 About Sea Dragon Energy Inc. 

 Sea Dragon is an international exploration and development company with  a focus on the Middle East and an office in Cairo Egypt.  For further  information please see the website of Sea Dragon at www.seadragonenergy.com and/or Sea Dragon's filed documents at www.sedar.com. 

 NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER  (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)  ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE. 

 Special Note Regarding Forward-Looking Information 

 This press release contains certain statements or disclosures relating  to Sea Dragon that are based on the expectations of Sea Dragon as well  as assumptions made by and information currently available to Sea  Dragon which may constitute forward-looking information under  applicable securities laws.  All such statements and disclosures, other  than those of historical fact, which address activities, events,  outcomes, results or developments that Sea Dragon anticipates or  expects may, or will occur in the future (in whole or in part) should  be considered forward-looking information.  In some cases,  forward-looking information can be identified by terms such as  "forecast", "future", "may", "will", "expect", "anticipate", "believe",  "potential", "enable", "plan", "continue", "contemplate", "pro-forma",  or other comparable terminology. In particular, this press release  contains forward-looking statements in respect of the ability of the  sufficiency of funds currently available to Sea Dragon to fund its  capital programs for 2012 and 2013.   

 Readers are cautioned that there is no assurance that Sea Dragon will  have adequate funds based on current fund availability and cash flows  to adequately fund its 2012 and 2013 capital programs. 

 With respect to the forward-looking statements contained herein, the  Corporation has made assumptions regarding anticipated cash flows, size  of capital programs and general economic conditions. Many factors could  cause the performance or achievement by Sea Dragon to be materially  different from any future results, performance or achievements that may  be expressed or implied by such forward-looking statements. These  factors include changes to available credit, decreases in cash flows,  unanticipated increases in capital programs and changes to economic  conditions. Readers are cautioned that the foregoing list of factors is  not exhaustive. The forward-looking statements contained in this press  release are expressly qualified by this cautionary statement. Sea  Dragon is not under any duty to update any of the forward-looking  statements after the date of this press release or to conform such  statements to actual results or to changes Sea Dragon's expectations  and Sea Dragon disclaims any intent or obligation to update publicly  any forward-looking statements, whether as a result of new information,  future events or results or otherwise, other than as required by  applicable securities laws. 

Sea Dragon Energy Inc.


CONTACT:  Said Arrata Chairman, CEO and Director [phone] Tony AntonPresident, COO and Director(403) 457-5035Olivier Serra Chief Financial Officer and Director [phone] Brisco Capital Partners Corp.Investor Relations(403) 262-9888 


    

Copyright