In March 2007, Dominion Tanzania Limited - a wholly-owned subsidiary of Dominion Petroleum - signed a Production Sharing Agreement which grants rights to explore for petroleum in the offshore Block 7. The First Exploration Period expires in March 2011. Block 7 is located on the continental slope of the Indian Ocean, immediately east of Dar es Salaam and incorporates 8,492 square kilometres (2.10 million acres). Water depths in Block 7 range from less than 400m to more than 2,500m.

In 2007-2008, Dominion acquired 4,350 km of 2D seismic over Block 7. Initial interpretation of the data indicates the presence of substantial leads in moderate water depths. The largest of these – Prospect ‘A’ or ‘Humpback’- is estimated to contain 1,030 Mmboe mean unrisked resource. Following further interpretation, 3D seismic will be acquired over selected leads. During 2008-2009, Dominion is participating in a Metocean survey in a consortium of offshore Tanzania and Mozambique operators led by Statoil. This survey will provide important information for the selection of drilling sites and for well design.

Block 7 Leads: two-way time map to Cretaceous seismic marker