Fugro Geoteam Wraps Up Seismic Survey Offshore Tanzania

Dominion announced that the 3D seismic survey that was recently conducted on Block 7, deep-water Tanzania, has now been completed. The data was acquired by Fugro Geoteam AS, using the seismic vessel the GeoBarents. The survey was conducted over a total area of 1,236 sq km covering the Alpha, Beta and 3 other prospects. A recent competent persons report (CPR) prepared by Energy Resource Consultants Ltd on the Alpha prospect confirmed a mean prospective resource of 1.1Bbbl as the oil case and 7Tcf as the gas case.

The data will now be processed by CGG Veritas. This should be complete by Q2 2011 and a "Fast Track" processed volume will be ready later this week. The long offset, 7km streamer, data will support amplitude variations with offset ("AVO") studies, these studies on the existing 2D data have helped de-risk Alpha and Beta already. The final results of the 3D and subsequent analyses will help the Company re-assess volumes and improve chances of success not only for the Alpha prospect but for all prospects mapped within, and immediately adjacent to, the survey area.

Dominion also notes that last month the first deep-water discovery in Tanzania, the Pweza-1 well, was drilled south of Block 7 and has proven a working hydrocarbon system in the deep-water of Tanzania. This first discovery confirms Dominion's belief that offshore Tanzania is highly prospective and provides further confidence in its exploration efforts on Block 7.

Andrew Cochran, CEO of Dominion, commented, "The recent discovery in Tanzania is very significant and justifies the increased levels of interest shown by major industry players in deepwater East Africa. We are extremely excited by what we already know about Block 7 and early results from the 3D support the drilling of Block 7, perhaps next year depending on rig availability."

Lake Edward Basin

  • Uganda Exploration Area 4B (Dominion Uganda Ltd 100%, Operator)
  • Democratic Republic of Congo, Block 5 (Dominion DRC 46.75%)

Dominion announced the first ever cross-border 2D seismic between DRC and Uganda for early in 2011. Dominion, and its partners, plan to acquire in excess of 300km of new seismic in the Lake Edward Basin. A contract will be awarded to the preferred contractor before year's end and the survey could start as early as January, lasting 3-4 months.

Dominion obtained valuable geological data from the Ngaji-1 well in Block 4B well and confirmed the presence of excellent quality reservoir sands as well as hints of source potential. These data justify continued exploration in the basin as a whole in both of the countries it straddles (Uganda and the DRC).

Andrew Cochran, CEO of Dominion, commented, "Obtaining the first ever cross-border seismic on the Lake Edward basin demonstrates Dominion's unique and strategic position in the play. While Ngaji-1 disappointed on some levels the subsequent analysis easily justify continued exploration of the basin, now armed with a better understanding of the basin as a whole. We could return to drilling as early as next year depending on the outcome of the new seismic."

Tanzania Onshore Mandawa PSA Kianika-1 well (Dominion Oil and Gas Ltd, 10%)

The Kianika-1 well on the Mandawa PSA continues to drill ahead and is expected to reach its planned depth of 2900m before the end of November. The well is operated by Dominion's partner Les Establissment Maurel et Prom (M&P). Further details will be forthcoming as the well progresses.