Dominion acquires exploration license in Uganda

Dominion Petroleum Ltd. has signed a production-sharing agreement (PSA) with Uganda to explore Block 4B in southwestern Uganda. The 2,021 sq km block is on the border contiguous with the Democratic Republic of Congo. Block 4B lies southeast of Lake Edward in the Eastern Rift Valley in the same sedimentary basin as Lake Albert.

By OGJ editors
HOUSTON, Aug. 1 -- Dominion Petroleum Ltd. has signed a production-sharing agreement (PSA) with Uganda to explore Block 4B in southwestern Uganda. The 2,021 sq km block is on the border contiguous with the Democratic Republic of Congo. Block 4B lies southeast of Lake Edward in the Eastern Rift Valley in the same sedimentary basin as Lake Albert.

Dominion says it believes the Block 4B area offers exploration potential comparable to that of the area around Lake Albert. During 2006, two of three discovery wells (Mputa, Waraga, and Nzizi) tested at combined rates of as much as 12,050 b/d of oil. In March it was announced that the oil discovery well Kingfisher-1 on Block 3a, immediately south of Block 2, had tested at a combined rate of 13,893 b/d of oil.

In the 2-year, first phase of the PSA, Dominion will spend $4 million or more on geological and geophysical work and on the shooting of at least 300 km of seismic. If Dominion elects to enter a second 2-year exploration phase, it will drill at least one exploration well on the block.

Dominion has the largest onshore holding of any exploration company in Tanzania and a large offshore position following the award of Block 7. Under terms of its PSAs, it holds 100% control over its assets.

Dominion has identified 16 prospects on its onshore acreage and is about to move to the next level in exploring these prospects. The company has identified 1,115 million boe mean, unrisked resources.


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