DGE Diagem (Tier2)

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

Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE:SDX)
announces that its wholly owned subsidiary, Sea Dragon Energy (Kom Ombo) Ltd.
has signed a Farm-out Agreement with Dana Gas Egypt Ltd. ("DGE") pursuant to
which Sea Dragon will acquire a fifty (50%) percent participating interest in
the Kom Ombo (Block-2) Concession, located approximately 1,000 km south of Cairo
on the West Bank of the Nile River. Sea Dragon's acquisition of a participating
interest in the Kom Ombo (Block-2) Concession is subject to the consent and
approval of the responsible authority. The Kom Ombo (Block-2) Concession is held
by Dana Gas PJSC, which is the successor company to Centurion Energy
International Inc. who was originally awarded the Kom Ombo (Block-2) Concession.


The Kom Ombo (Block-2) Concession is a large exploration block (approximately
11,446 Sq. Km) which contains the Al-Baraka Development Lease. The Al-Baraka oil
field is located in the Al-Baraka Development Lease and according to Sea
Dragon's internal estimates, has a discovered, undeveloped oil accumulation of
approximately 100 million barrels of Original Oil in Place as Discovered
Resources in two productive zones.


Four wells were drilled in the field of which three wells are currently on
production at approximately 850 bopd. According to DGE's latest Press Release,
the fourth well drilled in the Al-Baraka field has encountered approximately 50
feet of oil pay in the previously defined reservoirs and some 25 feet of oil pay
in a new reservoir. Preliminary testing of the new zone indicates the well to be
capable of producing at a maximum rate of 1300bopd. The Al-Baraka wells are
shallow vertical wells (4500 feet) and the oil is light, 37 Degree API. Under
the terms of the Al-Baraka Development Lease, the holders of the lease have the
right to produce the field for a period of 20 years with possible extensions.


Future development plans for the Al-Baraka oil field include the drilling of
some 30 development wells over the next several years. Horizontal drilling and
specialized fracturing are the techniques being considered in order to maximize
production rates and oil recovery.


According to Sea Dragon's internal estimates, the Kom Ombo (Block-2) Concession
currently has an additional 300 million barrels of Original Oil in Place as
Undiscovered Resources in multiple oil zones. The Concession is currently in its
third and final exploration phase which will end in 2012. A 280 sq. km 3-D
seismic program is planned to be followed by a three-well exploratory drilling
program targeting multi-level prospects away from the Al-Baraka field.


The total consideration paid by Sea Dragon to DGE is US$45million subject to
working capital adjustments. This consideration is to be paid in full by April
30, 2010. Approximately US$20million shall be cost recoverable by Sea Dragon out
of future production revenue. As owner of a 50% participating interest in the
Kom Ombo (Block-2) Concession, Sea Dragon will be required to pay its 50% share
of future expenditures and is entitled to receive a 50% share of all future
production revenues and 50% of all cost recoveries as specified in the
Concession Agreement. Under the terms of the Farmout Agreement, Sea Dragon and
DGE will jointly operate the Kom Ombo (Block-2) Concession.


Commenting on the acquisition of the Kom Ombo (Block-2) Concession, Mr. Said
Arrata, Sea Dragon's Chairman and CEO said, "This is a very significant event in
the growth cycle of our Company. It marks our second success in aggressively
acquiring discovered undeveloped resources with significant exploration upside.
We are very excited about the development potential of the Al-Baraka Field. The
Kom Ombo (Block-2) Concession is a very attractive and highly prospective
concession block for which we have high expectations. We are looking forward to
jointly operating this property with DGE and are optimistic that we can achieve
significant production levels over the short term through the application of new
technologies."


Sea Dragon is an international exploration and development company with a focus
on North Africa and Sub-Saharan Africa and offices in Calgary, Canada and Cairo,
Egypt.


For further information please see the website of the Company at
www.seadragonenergy.com or the Company's filed documents at www.sedar.com.


Certain statements contained in this press release constitute "forward-looking
statements" as such term is used in applicable Canadian and US securities laws.
These statements relate to analyses and other information that are based upon
forecasts of future results, estimates of amounts not yet determinable and
assumptions of management. In particular, statements concerning the development
of the Al Baraka field and exploration of the Kom Ombo (Block-2) Concession and
events or projections referenced or implied herein should be viewed as
forward-looking statements. References to "Prospective Resources" and
"Contingent Resources" contained herein have the meaning ascribed thereto in the
COGE Handbook. There is no certainty that any such resources will be
commercially viable to produce any portion of the resources indicated.


Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or are not statements of historical fact and should be viewed as
"forward-looking statements". Such forward looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Corporation to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and other factors
include, among others, costs and timing of exploration and production
development, availability of capital to fund exploration and production
development; political, social and other risks inherent in carrying on business
in a foreign jurisdiction, the effects of a recessionary economy and such other
business risks as discussed herein and other publicly filed disclosure
documents. Although the Corporation has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate as actual results and future events could vary or differ materially
from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements contained in this news release.


Forward-looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and the Corporation undertakes no
obligation to update forward-looking statements and if these beliefs, estimates
and opinions or other circumstances should change, except as required by
applicable law.


This news release contains forward-looking statements based on assumptions,
uncertainties and management's best estimates of future events. When used
herein, words such as "intended" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are based on
assumptions by and information available to the Corporation. Investors are
cautioned that such forward-looking statements involve risks and uncertainties.
Actual results may differ materially from those currently anticipated. The
forward-looking statements contained herein are expressly qualified by this
cautionary statement.

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