Otto Energy, together with its joint venture partner Swala Oil and Gas (Tanzania), disclosed Wednesday that they have received encouraging results from airborne surveys conducted in 2012 which confirmed the presence of significant sedimentary basins at Kilosa-Kilombero and the possibility of significant sedimentary basins at Pangani.
Otto and Swala have committed to year two in both Production Sharing Agreements (PSAs), including the acquisition of up to 300 line miles (500 line kilometers) of 2D seismic across both agreements.
Results of the seismic program will be available before the end of 2013 when the joint venture will decide whether to drill a well in both exploration license areas, Otto noted in its disclosure.
"This phased approach to exploration has allowed the companies' expenditure to be closely aligned with emerging prospectivity," the company said.
Otto's Chief Executive Officer, Gregor McNab, noted: "Our participation in the Kilosa Kilombero and Pangani PSAs is a valuable entry point into the emerging East African oil and gas province where recent exploration successes have highlighted significant hydrocarbon potential. Interpretation of new gravity and magnetic surveys has confirmed the likely presence of Tertiary rift basins with a geological setting that may be similar to the recent Tullow Oil discoveries in Kenya's Lokichar Basin. Our position in Tanzania is consistent with Otto's focus on South East Asia and onshore East Africa, and with our strategy of developing a pipeline of opportunities within the portfolio."
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