DPL Dominion Pet

 

TIDMDPL 
 
RNS Number : 9218I 
Dominion Petroleum Limited 
22 March 2010 
 

22 MARCH 2010 
 
                           Dominion Petroleum Limited 
                          ("Dominion" or the "Company") 
                                Operations Update 
·     Rig secured for drilling Uganda, Block EA4B 
·     Vessel secured for 3D seismic shoot on Block 7, offshore Tanzania 
 
·     Drilling in Mandawa, onshore Tanzania expected in June 2010 
Dominion is pleased to provide an update on its operations: 
Uganda Exploration Area 4B (Dominion Uganda Ltd 100%, Operator) 
Dominion Uganda has signed a letter of intent with Oil and Gas Exploration 
Cracow (OGEC), subject to government approval, for a rig to drill Ngaji-1 on 
Exploration Area Block 4B (EA4B), Dominion's first exploration well in Uganda. 
It is anticipated that the rig (which is owned by John Energy) will be mobilised 
in May, with drilling to commence in June on the Ngaji (Silverback Gorilla) 
prospect (unrisked recoverable reserves of over 100 million barrels (mmbo)). 
Ngaji is a tilted-fault block, structural closure, chosen as the best location 
to test the geology of the Ugandan side of the Lake Edward Basin. Site 
preparation will commence before the end of March. An Environmental and Social 
Impact Assessment for a contingent seismic programme has been initiated for any 
subsequent appraisal work on the acreage later in the year. 
The Ngaji-1 well is the first exploration well ever to be drilled in the Lake 
Edward basin of the Albertine Rift.  It is located in an area comparable to that 
of the Buffalo-Giraffe discovery in Exploration Area 1, reported to contain 
around 400 mmbo of recoverable oil. The results of the well will not only assess 
the prospect, but primarily serve to evaluate the whole of the basin's 
hydrocarbon potential. Success will lead to a rapid expansion of exploration & 
appraisal activity in EA4B and potentially the neighbouring Block 5 in 
Democratic Republic of Congo (Dominion Congo sprl 46.75%). 
Tanzania Offshore Deep Water Block 7 (Dominion Tanzania Ltd 100%, Operator) 
The 3D seismic programme of approximately 1,000 square kilometres is anticipated 
to commence in June. Fugro-Geoteam AS are being awarded the contract, subject to 
government approval, to conduct the seismic acquisition. The vessel is currently 
operating in neighbouring blocks to the south of Dominion's acreage. 
The Block 7 3D survey will focus on Pre-Tertiary structural and stratigraphic 
prospects already identified from the existing 2D seismic. The survey has been 
specifically designed to support further Amplitude Variations with Offset 
("AVO") studies for Direct Hydrocarbon Indicator ("DHI") analyses; positive AVO 
responses on the 2D data having been used to identify the prospects thus far. 
The Anadarko Windjammer gas discovery, offshore deepwater northern Mozambique, 
has been encouraging in that it demonstrates the presence of source rock capable 
of generating significant volumes of hydrocarbons in this region, which was the 
predominant risk associated with the offshore East African Margin prior to the 
discovery. 
 
Tanzania Onshore Mandawa PSA Kianika-1 well. (Dominion Oil and Gas Ltd., 10%) 
In Mandawa, Dominion and its partner, Maurel & Prom, are progressing operations 
for the upcoming Kianika-1 well. Well site and road construction have already 
begun in anticipation of the commencement of drilling in June. Kianika-1 is 
targeting recoverable resources of 77mmboe in a structural closure. The well is 
onshore and 200 km south of the country's capital Dar Es Salaam. 
On 15 February 2010, Dominion announced that it would reduce its interests to 
10% in the Mandawa and Kisangire PSAs, through a farm-out agreement with Maurel 
& Prom.  This agreement remains subject to government approvals which are 
anticipated soon. 
 
Andrew Cochran, Chief Executive of Dominion Petroleum, commented: 
"With the funds from our placing, all necessary services and equipment having 
been identified and now secured, we are kicking off our 2010 exploration 
programme. This includes the first ever well in the Lake Edward Basin of Uganda, 
as well as a large scale 3D seismic shoot in the emerging East Africa deepwater 
play of Tanzania. 
"We have spent much time and effort getting all in place and are now ready to 
get to work on the ground.  The next few months will therefore be the most 
active period experienced by Dominion so far in its corporate history." 
 
RECENT MEDIA COVERAGE OF THE REGION 
 
East Africa has become a promising new frontier for oil exploration and major 
multinationals are jostling for the rights to search for black gold, industry 
experts said Tuesday. 
 
While the Atlantic coast of Africa -- most notably Nigeria and Angola -- has 
long been exploited by western oil companies, it took decades for the industry 
to turn its sights to the east. Things changed in 2006 with the first 
significant discovery in Uganda, in the Lake Albert basin. Since then another 15 
sites have been confirmed. Significant natural gas reserves have also been 
discovered in Tanzania and Mozambique. Ethiopia and Somalia are also sites of 
intense exploration. 
 
Source: Energy-pedia news 
 
Seismic tests over the past 50 years have shown countries up the coast of East 
Africa have natural gas in abundance. Early data compiled by industry 
consultants also suggest the presence of massive offshore oil deposits. 
 
However, East Africa still remains relatively unexplored. North Africa has seen 
20,000 wells sunk over the past few decades, while drillers have sunk 14,000 
wells in and off West Africa. In East Africa the total is about 500 wells. That 
is now changing.  Kenya issued six exploration licenses between 2000 and 2002 
and two more to CNOOC in the succeeding four years. In 2008 and 2009, it issued 
18 new licenses. Many more licenses have been awarded by the Governments of 
Tanzania and Uganda. 
 
Source: Time Magazine 
 
It has recently been reported that Exxon Mobil Corp. is in advanced talks to buy 
into Statoil ASA's offshore block in Tanzania, a move that would mark the first 
entry of an oil major oil company into the East African nation. 
 
Source: Dow Jones Newswires 
 
ENQUIRIES: 
 
Dominion Petroleum Limited 
 Andrew Cochran, Chief Executive Officer 
Tel: +44 (0) 207 811 5300 
Rob Shepherd, Finance Director 
 
Pelham Bell Pottinger Public Relations 
Archie Berens                                                   Tel: +44 (0) 207 
337 1509 / +44 (0) 7802 442 486 
 
Seymour Pierce Limited, NOMAD 
 Nandita Sahgal 
                 Tel: +44 (0) 207 107 8000 
 
Canaccord Adams Limited, Joint Broker 
Jeffrey Auld, Elijah Colby                                  Tel: +44 (0) 207 050 
6500 
 
 
Mirabaud Securities LLP, Joint Broker 
 Peter Krens 
                          Tel: +44 (0) 207 321 2508 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCQLLBLBXFBBBE 
 

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