PSC Signed For Block L9, Offshore Kenya (7948G)
May 18 2011 - 2:00AM
UK Regulatory
TIDMDPL
RNS Number : 7948G
Dominion Petroleum Limited
18 May 2011
18 May 2011
DOMINION PETROLEUM LIMITED
("Dominion Petroleum" or "the Company")
PSC SIGNED FOR BLOCK L9, OFFSHORE KENYA
Dominion Petroleum is pleased to announce that it has signed the
Production Sharing Contract (PSC) for Block L9 in the Lamu Basin,
offshore Kenya, giving the Company a 60% working interest and
operatorship. The Company previously announced the award of L9 on
21(st) March 2011 and the PSC was signed yesterday by Dominion
Petroleum and the Kenyan Ministry of Energy in Nairobi.
Dominion Petroleum shall now begin the initial exploration
period of the PSC. The Company will reprocess 2,500km of 2D seismic
data, carry out block wide G&G studies and acquire 500km2 of 3D
seismic data in the initial two year exploration period. This will
result in a minimum gross expenditure of $6.15mm. Following this
initial two year period, the Company can enter the second two-year
period by committing to drill a single exploration well.
Block L9 was one of the last remaining prospective opportunities
for unlicensed acreage along the whole of the deepwater East
African margin. The area is attracting increasing attention from
large, well established competitors, as well as stimulating
interest from new entrants. Block L9 bears many geological
similarities to the Company's Block 7 offshore Tanzania and
Dominion intends to use its existing knowledge of the regional
geology to maximise the potential of the prospects within the
PSC.
Dominion will coordinate exploration activities within the
expanded portfolio offshore East Africa to better leverage
experience in Tanzania and to achieve better cost efficiencies.
Andrew Cochran, Chief Executive of Dominion Petroleum,
commented:
"The signing of L9 in Kenya is a significant milestone for
Dominion as our deepwater East Africa 'footprint' has grown
substantially. We find ourselves amidst some very large companies
in both Tanzania and Kenya, still being able to capture L9 under
competitive terms in a competitive process. The inclusion of L9 in
the deepwater portfolio means that 2012 will be a very active year
for the company in what is becoming one of the 'hottest' emerging
plays in Africa."
ENQUIRIES:
Dominion Petroleum Limited
Andrew Cochran, Chief Executive Officer +44 (0) 20 7349 5900
Rob Shepherd, Finance Director
Pelham Bell Pottinger Limited +44 (0)20 7861 3112 /
Archie Berens +44 (0)7802 442 486
RBC Capital Markets, NOMAD and Joint Broker +44 (0)20 7653 4000
Martin Eales
Paul Stricker
Canaccord Genuity Limited, Joint Broker +44 (0)20 7050 6500
Tarica Mpinga
This information is provided by RNS
The company news service from the London Stock Exchange
END
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