Dominion Commences Seismic Survey Offshore Tanzania

Dominion announced that the ca. 1,000 km sq 3D seismic survey has commenced on Block 7, deep-water Tanzania. The survey has been specifically designed to support amplitude variations with offset ("AVO") studies all the way down to the deepest objectives (Cretaceous/Jurassic Channel/Fan) and should take approximately two months to acquire and another two to three months to process, interpret and analyze.

The initial AVO work performed on existing 2D seismic data has been very encouraging in identifying numerous positive indications and now drives the 3D survey; the results of which should help the Company re-assess volumes and improve chances of success ("CoS") not only for the Alpha prospect but for all prospects mapped within, and immediately adjacent to, the survey area.

Dominion has also released the competent persons report (CPR) prepared by Energy Resource Consultants Ltd (ERC) on the first prospect, Alpha, in Block 7. The report confirms a mean prospective resource of 1.1Bbbl as the oil case and 7Tcf as the gas case. ERC have risked the prospect with a 12% CoS overall (individually, the various objectives within Alpha are estimated to have a CoS of between 9% and15%).

Since the CPR was initiated, drilling in deepwater East Africa has proven some elements of the Alpha play concept. In particular, both the pre-tertiary (i.e. Cretaceous) and the oil potential of the East African Margin as a whole have been de-risked. The current drilling in the area will be watched closely by Dominion and factored into its analysis of Block 7 as, and when, more information becomes available.

Andrew Cochran, CEO of Dominion, commented, "Deepwater East Africa is seeing greatly increased attention and activity from the oil & gas sector and Block 7 is squarely in the middle of that focus. The CPR on Alpha independently confirms Block 7's highly prospective geology and we are very excited about progressing our work on all prospects and leads so far identified in the block."

Lake Edward Basin

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

With the Ngaji-1 well in Block 4B having been drilled in July, on time and under budget, Dominion has now met all of its contractual obligations for the current period of its PSA with the Government of Uganda. The well has been plugged and abandoned as a dry hole with gas shows, but has been preserved for possible re-entry to support deviated drilling for objectives down-dip from its surface location. Valuable geological data has been obtained from the well, the first ever in the Lake Edward Basin, and will support continued exploration in the basin as a whole in both of the countries it straddles (Uganda and the DRC).

Ngaji-1 has confirmed the presence of excellent quality reservoir sands, which was one of the biggest pre-drill risks, and provides for the first time a definition of the basin's stratigraphy. These data will form the bases of Dominion's exploration program in both Uganda and the DRC going forward. The next stage of the program includes 300km - 500km of 2D seismic across both countries.

Andrew Cochran, CEO of Dominion, commented, "We always saw the Lake Edward area as a single basin, straddling two countries. Now that we have the PSA formally ratified in the DRC, we are well placed to continue the exploration of the basin as a whole and, following the upcoming seismic, we will rank all prospects and leads on a basin-wide basis to decide where best to drill next."

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 currently at a depth of approximately 1,690m. The well is operated by Dominion's partner Les Establissment Maurel et Prom (M&P). Further details will be forthcoming as the well progresses.