Study:Dominion Tanzania Prospect Has 1 Billion Bbl/Oil Potential-Source

An independent assessment of the first prospect of Dominion Petroleum Ltd.'s (DPL.LN) Block 7 in Tanzania shows a prospective resource potential of one billion barrels of oil, or seven trillion cubic feet of natural gas, a person familiar with the matter said Sunday.

An independent geological report on the first prospect in the deepwater Block 7, which is 100% owned by Dominion, "has a mean prospective resource of 1.104 billion barrels of oil or 7.069 trillion cubic feet," the person said. The news comes amid renewed interest for the new East African frontier.

U.K.-based integrated gas company BG Group PLC (BG.LN) and U.S. major Exxon Mobil Corp. (XOM) recently acquired stakes in oil and gas exploration blocks offshore Tanzania.

Tanzania has seen little oil exploration, but contains a large section of the same East African Rift Valley where around 2 billion barrels of oil have been discovered in Uganda.

U.S. oil independent Anadarko Corp. (APC) also made a high quality deep water gas discovery in February in the section of the Ruvuma Basin that stretches into the waters of Mozambique.

-Benoit Faucon, Reporter, Dow Jones +44 77 601 777 36

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