Dominion Petroleum signs Tanzanian PSAs

June 20, 2006
Dominion Petroleum has entered into three PSAs with Tanzanian Petroleum covering more than 10 million acres in the onshore Mandawa, Kisingire, Lukuliro, and Selous licenses along Tanzania.

By OGJ editors
HOUSTON, June 20 -- Dominion Petroleum Ltd., Bermuda, has entered into three production-sharing agreements (PSAs) with Tanzanian Petroleum Development Corp. covering more than 10 million acres in the onshore Mandawa, Kisingire, Lukuliro, and Selous licenses along the eastern coast of Tanzania.

Dominion says it has identified 16 prospects through analysis of historical data and has committed to drill four wells, beginning in late 2006, subject to rig availability.

The Jurassic Mandawa sedimentary basin contains potential reservoir sandstones and limestone and a number of potential traps, Dominion said.

The Kisingire PSA comprises two large, adjoining areas: Kisingire and Lukuliro. The Songo Songo gas fields lie to the east of this area (OGJ, May 15, 2006, Newsletter). The geology comprises an early sedimentary basin underlying a Jurassic rift. Royal Dutch Shell PLC's shallow drilling in the 1980s identified oil source rocks in this basin.

The acquisition of additional seismic data will enable Dominion to identify prospects in the Selous PSA in southern Tanzania, a relatively underexplored area dominated by the Permian Selous basin.