Dominion Notes Kenyan Acreage Expansion In Half Yearly Overview

Friday, September 30, 2011

  • Progress made in advancing Deepwater Block 7, offshore Tanzania, with additional mapped prospects estimated at between 1.3 Tcf and 6.5 Tcf
  • Production Sharing Contracts entered into with Government of Kenya
  • US$10.7 million cash position as at 30 June 2011

Dominion Petroleum Limited is an independent oil and gas exploration company whose core activity area is Africa, with current operations in Tanzania, Kenya, Uganda and the Democratic Republic of Congo.

HIGHLIGHTS

  • Significant progress made in advancing Deepwater Block 7, offshore Tanzania, with additional mapped prospects estimated at between 1.3 Tcf and 6.5 Tcf (P90 to P10 range).
  • Production Sharing Contracts (PSC's) entered into with Government of Kenya in relation to:

  1. Block L9, offshore Kenya
  2. Block L15, offshore Kenya

  • Both Kenyan PSC's are contiguous to blocks operated by significantly larger operators, where successful drilling has already taken place.
  • US$10.7 million cash position as at 30 June 2011

Andrew Cochran, Dominion's chief executive, commented: "Dominion has had an eventful first half of 2011. Most notably, it has added exciting acreage with the acquisition of Blocks L9 and L15 offshore Kenya. We believe that this combined with our existing portfolio, on- and offshore East Africa, will attract industry interest and allow us to retain a sizable portion of upside in these highly prospective blocks.

"The failure of the resolutions at the SGM in connection with Dominion's plans to strengthen its balance sheet and expand its operations was clearly a disappointment for the Board and the majority of Dominion's shareholders who had voted in favour of them. Even with this disappointment, with Blocks L9 and Block L15 now added to its portfolio of exploration assets in offshore East Africa, Dominion holds a leading exploration portfolio in the deepwater East African margin with its three blocks in Tanzania and Kenya.

"Clearly there is work to be done, but the directors anticipate that the expanded, combined portfolio will gain even more industry interest going forward. We believe that Dominion's shareholders will be in a position to gain significant benefit from their position as stakeholders in the exciting East African deepwater play."

For a detailed financial and operational review plase click here.

Article Tags Dominion Petroleum Bermuda North America Finance Operations Update Deepwater

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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