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PSAs

Mandawa
The Mandawa PSA is a sparsely-populated area along the Tanzanian coast. The Early Jurassic Mandawa sedimentary basin – the target of Dominion’s exploration activity – includes source rocks capable of generating oil, sandstones and limestones that are potential reservoir rocks, and a number of potential oil traps. Structural traps are provided by salt movement and basement faulting. Dominion intends to drill the first commitment exploration well – Mihambia-1 – in late 2008. The well will be drilled to a total depth of between 2,300m and 2,800m to an Early Jurassic target. Dominion working interest 50%; partner: Maurel & Prom (50%).

 

Kisangire
The Kisangire PSA comprises two large, adjoining licences: Kisangire and Lukuliro. To the east of the area is the Songo Songo gas field, which supplies gas for power generation in Dar es Salaam. The Mkuranga gas discovery (Maurel et Prom, 2007) lies just outside the Kisangire Licence. In Kisangire, the earlier Permian Selous sedimentary basin plunges beneath the Jurassic Mandawa basin and the area includes both Permian and Jurassic targets. There are oil seeps in the centre of the Kisangire Licence at Wingayongo. A seismic programme (approximately 250 km) is planned for 2008-9 and exploration drilling is anticipated to start in 2009. Dominion working interest 45% (operator: Heritage Kisangire Tanzania Limited).

 

Selous
The Selous PSA in southern Tanzania is a relatively un-explored area dominated by the Permian Selous basin. Following an initial technical evaluation, Dominion considers that there is potential for oil and gas in the area and that additional seismic data will identify significant prospects. Seismic acquisition will not start before 2009 due to environmental constraints. Dominion working interest 100%.

Onshore Tanzania

Dominion’s wholly-owned subsidiary Dominion Oil and Gas Limited owns production sharing rights over three contract areas onshore in Tanzania  with a combined area of 39,738 square kilometres (9.82 million acres). The Mandawa and Kisangire PSAs were signed on 20th May 2005; the Selous PSA on 27th April 2006. Mandawa (50% working interest, Maurel & Prom 50%) and Selous (100% working interest) PSA’s are operated by Dominion; Kisangire is operated by Heritage Oil and Gas through its subsidiary, Heritage Tanzania Kisangire Limited (Dominion 45% working interest).

Dominion has inherited a large seismic database consisting of more than 7,000 km of 2D lines. This has made it possible to progress rapidly to the determination of prospective resources (below) and to the identification of new drilling targets.
Pre-existing seismic database
Pre-existing seismic database

Prospects in Tanzania:
PSA Identified prospects Mean un-risked recoverable resource (mmbbloe) Equivalent risked resource (mmbbloe)
Mandawa 12 690.1 71.5
Kisangire 3 269.0 20.2
Selous 1 156.0 12.0
Total 16 1,115.1 103.7
 

2006-2008 seismic programmes

During 2006, Dominion acquired 495 km of 2D seismic in the Mandawa and Kisangire license areas. These new data have confirmed the presence of drilling targets and of prospective sedimentary rocks in previously unexplored areas. In 2007-8 Dominion acquired a further 234 km of 2D seismic in Northern Mandawa. These data have indicated the presence of new drilling targets in a previously unexplored part of the area. Dominion has now fulfilled its seismic commitments under both Mandawa and Kisangire PSA’s.

Seismic Lines
Seismic lines acquired by Dominion during 2006