By OGJ editors
HOUSTON, Apr. 3 -- Dominion Petroleum Ltd. has signed a production-sharing agreement with Tanzanian government agency Tanzanian Petroleum Development Corp. (TDPC) for an exploration block off eastern Tanzania.
Block 7 covers 8,500 sq km on the continental slope and lies in 100-3,000 m of water in the Indian Ocean.
Dominion plans to spend at least $8.75 million during the initial 4-year exploration period—$1 million on geological and geophysical surveys, $4 million on acquiring more than 4,000 km of 2D seismic data, and $3.75 million on acquiring more than 500 sq km of 3D seismic.
Initial data analysis previously acquired by Dominion suggests there are encouraging prospects in the shallower part of Block 7 at drillable depth. The company is required to drill a well before the second 4-year term.
Previously, Dominion entered into three PSAs with TDPC covering more than 10 million acres in the onshore Mandawa, Kisingire, Lukuliro, and Selous licenses and was scheduled to drill four wells (OGJ, July 10, 2006, Newsletter).
