Dominion Petroleum Awarded Acreage in Southwest Uganda
Dominion Petroleum has signed a Production Sharing Agreement ('PSA') with the Government of the Republic of Uganda.
The new PSA is for Exploration Block 4B, located in the southwest of the country, on the border contiguous with the Democratic Republic of Congo, covering a total area of 2,021 square kilometers. Block 4B lies east and south of Lake Edward in a part of the Eastern Rift Valley. It is in the same sedimentary basin as Lake Albert, the site of significant oil discoveries during 2006 and 2007 on Block 2, which is located on the north-eastern part of Lake Albert. During 2006, two of three discovery wells (Mputa, Waraga and Nzizi) tested at combined rates of up to 12,050 barrels of oil per day. In March 2007, it was announced that the oil discovery well Kingfisher-1 on Block 3a, immediately south of Block 2, had tested at a combined rate of 13,893 barrels of oil per day.
Dominion Petroleum believes the area covered by Block 4B offers exploration potential that is comparable to that of the area around Lake Albert.
The first phase of the PSA is 2 years. During the first phase, Dominion will spend at least US $4.0 million on geological and geophysical work and on the acquisition of at least 300km of seismic data. If Dominion elects to enter a second two year exploration phase, it will drill at least one exploration well.
Mike Garland, Chief Executive of Dominion Petroleum, commented:
"The signing of Block 4B maintains our strategy as an African explorer and adds significant value to our portfolio. It takes us into Uganda, a highly prospective and politically stable country. No-one can have failed to notice the recent success enjoyed by others in the region and we intend to continue this. This is another significant event in the development of Dominion and shareholders should be very excited."
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