Operations Update
28 JUNE 2010
Dominion Petroleum Limited
("Dominion" or the "Company")
Operations Update
CPR on Alpha Prospect shows large potential in Block 7, deep-water Tanzania
Kianika-1 well spuds in onshore Mandawa licence, Tanzania
Democratic Republic of Congo Block 5 ratified by Presidential Decree
Uganda drilling operations for Ngaji-1 in EA4B ongoing
DOMINION IS PLEASED TO PROVIDE AN UPDATE ON ITS OPERATIONS:
Tanzania Offshore Deep Water Block 7 (Dominion Tanzania Ltd 100%, Operator):
Dominion is pleased to announce the results of a competent persons report (CPR) on the first prospect in Block 7, offshore deep-water Tanzania. The "Alpha" prospect has a mean prospective resource of 1.104Bbbl of oil or 7.069Tcf of gas, based on the CPR recently concluded by Energy Resource Consultants Ltd. (ERC). ERC have risked the prospect with a 12% Chance of Success (CoS) as a whole (differing CoS for different objectives ranging from 9%-15% within Alpha); net risked mean resource: 134MMbo or 848Bcf. Alpha is in water depths of ca. 4000 feet and represents multiple drilling objectives all the way down to ca. 16,000 feet.
The Alpha prospect was identified by the existing 4,350 kilometers of 2D seismic coverage and is supported by amplitude variations with offset ("AVO") studies performed this year. This is only the first prospect in the block and the CPR work undertaken on Alpha was intended to assist in planning a ca. 1,000km sq 3D seismic survey. This survey should begin next month and should take approximately 60 days to acquire. Once completed, Dominion will initiate further work on the other prospects and leads already identified in the 2D seismic.
Andrew Cochran, CEO of Dominion, commented:
"This is an excellent start and it demonstrates the 'world class' nature of Block 7 in terms of hydrocarbon potential. The Alpha prospect is not unique, nor even the largest so far identified, within Block 7 but simply the most robust prospect to guide our continued work in the area. Once armed with the upcoming 3D we will carry out additional technical analyses and update the full prospect and lead inventory accordingly."
Tanzania Onshore Mandawa PSA Kianika-1 well. (Dominion Oil and Gas Ltd., 10%)
Dominion and its partner Les Establissment Maurel et Prom (M&P) are pleased to advise that the Kianika-1 well has spudded in the Mandawa PSA, onshore Tanzania. The prospect is located in the norther part of Mandawa, ca. 200 kilometers south of the capital Dar es Salaam. The well is targeting a 264Bcf gas prospect at a depth of ca. 9,000 feet with a 9% chance of success (CoS). As announced in February, Dominion Oil & Gas Ltd (Dominion) is farming-out most of its interests in, and operatorship of, Mandawa to M&P such that Dominion is participating for 10% in the well (M&P 90%). This transaction with M&P is part of Dominion's corporate repositioning and portfolio management, seeking to focus more of its efforts and capital on higher-impact projects elsewhere in the portfolio.
Democratic Republic of Congo, Block 5 (Dominion DRC 46.75%)
Dominion is delighted to announce that it and its partner, Soco International Plc (Soco), have been informed that the Production Sharing Contract (PSC) for Block 5 in the Albertine Graben area of the Democratic Republic of Congo (“DRC”) has been ratified by Presidential Decree, the final step in the award of the block. The PSC was initially awarded in December 2007 and is adjacent to Dominion's Exploration Area 4B (EA4B) in Uganda.
The Block, to be operated by SOCO, is located at the southern end of the Albertine Rift system and includes the DRC's portion of Lake Edward. During the initial five year exploration period the Block 5 partnership have committed to acquiring at least 300 kilometers of 2D seismic data and the drilling of two exploration wells. The partners may seek to acquire 2D seismic this year in conjunction with similar activities planned by Dominion in EA4B later in 2010. As announced last week Dominion has spud the first well ever in the Lake Edward basin, Ngaji-1, with results due next month and additional seismic likely to follow.
The Block 5 partnership consists of Dominion Petroleum Congo SPRL with 46.75%, SOCO Exploration Production DRC SPRL holding 38.25%, and the state oil company of the Democratic Republic of Congo Congolaise des Hydrocarbures (“COHYDRO”) with 15%.
Andrew Cochran comments:
“This is great news. We are most appreciative of the DRC government for ratifying the contract and thereby recognizing the benefit and expertise our partnership brings to the country. Dominion has a commanding position throughout the Lake Edward and a substantial exploratory program underway in the basin already, so we will no doubt hit the ground running.”
Uganda Exploration Area 4B (Dominion Uganda Ltd 100%, Operator)
As announced on 21st June2010, the Ngaji-1 well was spudded, targeting a depth of 6,000 feet, and should be completed next month. Drilling operations are ongoing with significant progress having been made since the start. The results of this first well will not only guide future activity in Uganda but also will impact exploration activities in DRC's Block 5 with Ngaji being a test of the Lake Edward basin geology as a whole, in both countries. Updates on drilling will be forthcoming as and when appropriate.
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) 207 861 3112 / +44 (0) 7802 442 486
Seymour Pierce Limited, NOMAD
Nandita Sahgal Tel: +44 (0) 207 107 8000
Mirabaud Securities LLP, Joint Broker
Peter Krens Tel: +44 (0) 207 321 2508