Rules FAQ
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You can play the event you find with Sea of Blood in the same reaction window if its triggering condition is met (for instance, Taste For Flesh). There is no action window immediately after winning the challenge though, so it is too late to use the agenda’s Action ability to reduce the cost of your event. It is also too late to play an event that is not a reaction (for instance, Winter Is Coming).
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Each player gets an opportunity to trigger a reaction to winning or losing a challenge, in player order. If you use Sea of Blood to search for an event, your opponent may then play a card like His Viper Eyes to immediately discard it.
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You can use Sea of Blood to reduce the cost of playing an event from shadows.
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Unlike the original version of the card, this one does not prevent you from playing events during or challenges. But it does prevent you from including neutral events in your deck, so no playing cards like Put to the Sword or Put to the Torch.