Sea Dragon Provides an Update in NW Gemsa

Sea Dragon Energy Inc. is pleased to provide the following update on its Operations in Egypt. The Al Ola X-1 well spud on July 15th and is currently drilling at 13,550 feet. The primary objectives for this well being the Shagar and Rahmi members of the Kareem Formation were successfully encountered with 6 feet and 19 feet of oil pay respectively. No oil water contact was seen in this well and once tested it will result in extending the Al Amir SE development lease to the south of the existing field boundary, with the potential of increasing the field’s reserves. Casing was run and cemented over the Kareem Formation to a depth of 10,600 feet. Drilling then resumed to penetrate and evaluate the secondary objective in the Lower Rudeis Formation, where gas and condensate were tested in the Al Amir SE #6 well. Strong gas shows were encountered in the interval 13,400-13,500 feet. This well is expected to shortly reach a total depth of 13,700 feet.

Production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is holding steady at 9000 bopd.

Sea Dragon has a 10% working interest in the NW Gemsa Concession with Vegas Oil at 50% as operator and Circle Oil Plc. with 40%.

Commenting on these latest developments on our operations in Egypt, Company Chairman and CEO Mr. Said Arrata stated “Development drilling activities in both of our concessions in Egypt continue to yield successful results. The completion and placement of these new wells on production in Al Baraka and Al Amir SE fields should allow us to meet our 2010 year end targets”.

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• Exploration