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Sea Dragon Energy and Madison PetroGas to form new company

Staff writer |
Sea Dragon Energy and Madison PetroGas have entered into an arrangement and Sea Dragon will, subject to certain conditions, acquire all of the issued and outstanding Madison common shares.

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The combined entity will be named SDX Energy Inc. The transaction would create a larger company with stronger balance sheet and a greater ability to achieve economies of scale through operational efficiencies.

The company would be poised for strong growth in oil production and reserves from development in its onshore core Egypt basins and high impact exploration in both Egypt and Cameroon.

The combined company business plans are fully funded through 2016 with a pro forma working capital position of US$16.5 million as of closing and a solid cash flow profile.

"The combined entity will offer enhanced growth potential and we are excited by the possibilities. Size matters in our business and particularly in the current business environment,” said David Mitchell, CEO of Madison.

“With similar Egypt portfolios and strategies, a business combination will improve our ability to transact and grow shareholder value. A London, UK base will also improve our operational efficiencies and place us in the premier business and capital markets center for the Middle East and Africa region.


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