Dominion has announced the results of an independent audit of its prospective oil resources in Uganda ("Exploration Area 4B" or
Exploration Area 4B in Uganda is located in south-western Uganda in the Lake Edward segment of the Albertine Rift Basin. The adjacent segment of the Rift Basin -- Lake Albert -- has been the site of several major oil discoveries in the last three years including those of Kingfisher, Warthog and Buffalo-Giraffe. In November 2008, Dominion completed the acquisition of 371km of 2D seismic data onshore and 130km on Lake Edward. The company has also carried out extensive field studies including seep sampling and analysis. The results have been interpreted by Dominion and audited by ERC Energy Resources Consultants Limited ("ERC") using the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System.
In EA4B, Dominion has to date identified four prospects and 11 leads. The prospects are adequately defined by the existing seismic and may be considered ready for drilling. The leads require the acquisition of further seismic.
ERC's estimates are as follows:
Dominion separately estimates the gross recoverable resource in the 11 leads to be 782 MMbbl.
Exploration Area 4B is held under a Production Sharing Agreement by a subsidiary of Dominion Petroleum Limited - Dominion Uganda Limited (license interest 100% and operator). Within the first two-year exploration period, Dominion Uganda Limited was obliged to acquire 300km of seismic data (completed). Dominion has applied to enter the second two-year exploration period which will start in July 2009, during which it will be required to drill at least one exploration well.
Justin Dibb, Chief Executive Officer of Dominion, said, "ERC have extensive experience of auditing oil resources in Uganda. This Competent Person's Report covering EA4B represents independent confirmation of the Company's view that there is very significant oil potential in the Exploration Area. As previously indicated, Dominion needs to raise additional funding for an exploration drilling campaign to start in early 2010 and to that end is in discussions with potential investors, both trade and financial, as well as with its existing loan-note holders. Notwithstanding the continuing difficult financing environment, Dominion is optimistic that the potential it has identified in Block EA4B and which is emphasized by ERC in their report will enable it to secure the funds required to pursue this significant opportunity."
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