Sea Dragon Energy has signed an agreement with a private company to sell its 50 per cent participating interest in Kom Ombo Concession onshore Egypt
According to the deal, the Canada-based oil and natural gas explorer would be paid US$6mn in cash and US$1.2mn in four equal monthly installments, commencing the month following closing.
The Kom Ombo Concession is located in the southern part of Egypt, approximately 1,000km south of Cairo.
The concession consists of producing fields — Al Baraka and West Al Baraka — producing around 412 bpd.
Said Arrata, chairman of Sea Dragon Energy, said, “The company has recently completed a review of both its strategy and existing asset portfolio.
“As a result, Kom Ombo was no longer core and the decision was made to sell it. The funds generated from this sale will be reinvested into our Gulf of Suez Fairway producing assets where we recently acquired the Shukheir Marine Concession.”
