Dominion is pleased to announce that the Government of Tanzania has approved the farm-in by Heritage Oil Limited to the Kisangire production sharing agreement (“PSA”), which was previously announced on 21 April, 2008.

 

The Kisangire PSA comprises two licences, Kisangire and Lukuliro, which cover an area of 7,280 square kilometres and 8,828 square kilometres respectively.  The PSA was originally awarded to Dominion in May 2005 with an exploration period of four years followed by one extension of four years, a further extension of three years and the right to a development licence with a term of 25 years.

 

Under the terms of the farm-in agreement, Heritage has the right to initially earn a working interest of 55% in the Kisangire and Lukuliro licences. In order to earn the working interests, Heritage will fund all costs to acquire a minimum of 150 kilometres of 2D seismic data during 2008 and the costs of the first commitment well. Heritage also has an option to earn an additional working interest of 15%, thereby increasing its participating interest to 70%, by funding 87.5% of the costs of a second well.

The Kisangire licence area is close to the Mkuranga-1 gas discovery, which was drilled in 2007 and reportedly flowed gas at a rate of 20 mmcf/d,

Historic seismic data, combined with encouraging hydrocarbon shows in wells drilled in the region and oil seeps at Wingayongo in the Kisangire licence area, indicate the existence of a working hydrocarbon system that is generating both oil and gas.

 

Mike Garland, Chief Executive Officer of Dominion, said:

 

“Dominion is pleased to formally welcome Heritage as a partner for Dominion in Tanzania.  We look forward to working with them going forwards in exploring part of our acreage which we believe has considerable hydrocarbon potential.”

 

 

ENQUIRIES:

 

Dominion Petroleum Limited 

Mike Garland, Chief Executive

Rob Shepherd, Finance Director

+44 (0) 20 7811 5300

 

Pelham Public Relations

Archie Berens  

+44 (0)20 7743 6679 / +44 (0)7802 442 486

 

Seymour Pierce Limited   

Corporate Finance 

Nandita Sahgal / Christopher Wren

Corporate Broking

Richard Redmayne / David Banks

+44 (0)207 107 8000

 

Tristone Capital Limited

Nick Morgan  

+44 (0)207 355 5800

 

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