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Sea Dragon Energy Announces Fourth Quarter

Sea Dragon Energy Inc. (SDX.V) announced its financial and operating results for the three months and year ended December 31, 2012. All dollar values are expressed in United States dollars unless otherwise stated.

2012 Highlights:

Increased oil sales during the last three months of 2012 by 28% to 1273 bopd as compared to 991 bopd during the same period in 2011.

Increased Netbacks during the last three months of 2012 by 43% to $5.3MM ($45.09/bbl) as compared to $3.7MM($40.75/bbl) during the same period in 2011.

Reduced 2012 G&A costs by 22% to $4.7MM from $6.0MM in 2011.

Completed the acquisition of National Petroleum Company Shukheir Marine Ltd. as of December 1st.2012, thus adding circa 500 bopd from the Shukheir Bay and Gamma oil fields in the Gulf of Suez

Exited the year with production of 1665 bopd, cash and cash equivalents of $5.7MM and working capital of $6.6 MM and no net debt

Realized a net loss of $28.1MM, due to an impairment loss on the Company's Kom Ombo asset.

Subsequent to year-end:

Production is currently 1911 boepd.

Collected $6.2MM in outstanding accounts receivable, thus reducing the Company's receivables to $3.5MM, equating to two months of production

Paid back $1.0MM of debt, with a current cash balance of $5.1MMand nill net debt

Successfully completed the AASE#14 well as a Kareem Formation producer in NW Gemsa initially contributing 1333 boepd of new production

Successfully drilled the AASE#16 well as a new Kareem Formation water injector

Finalized the West Al Baraka Development Lease and placed the West Al Baraka#2 well on extended production testing

Completed the gas conservation project in the NW Gemsa concession with condensate, NGL and sales gas commencing in February, 2013 and adding some 180boepd of net production

During the first quarter of 2013 additional testing results from West Al Baraka field were significantly lower than anticipated. These results are an indicator of impairment for the Kom Ombo concession and as a result the carrying amount will be tested for impairment in the subsequent period.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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