Farm-out to Mubadala Oil & Gas (6216P)
October 05 2011 - 9:00AM
UK Regulatory
TIDMDPL
RNS Number : 6216P
Dominion Petroleum Limited
05 October 2011
5(th) October 2011
Dominion Petroleum Limited
("Dominion" or the "Company")
Farm-out to Mubadala Oil & Gas and Operations Update
- Farm-out of 20% working interest in Block 7, deepwater
Tanzania to Mubadala Oil & Gas
- Production Sharing Contract signed for Block L15, offshore
Kenya
- Relinquishment of the Selous Contract Area, onshore
Tanzania
Farm-out of 20% working interest in Block 7, deepwater Tanzania
to Mubadala Oil & Gas
Dominion is pleased to announce that it has agreed to farm-out a
20% working interest in Block 7, deepwater Tanzania to a subsidiary
of Mubadala Oil & Gas ("Mubadala"). Following the completion of
the transaction Dominion will hold an 80% working interest and
operatorship in the Block. Under the terms of the agreement
Mubadala will pay Dominion a $20 million cash consideration on
closing and carry Dominion's remaining 80% working interest in a
new seismic programme expected to commence prior to year-end up to
a cap of US$2,400,000.
As previously disclosed, a large 3D seismic survey was acquired
on Block 7 at the end of 2010 over a lead identified as the Alpha
structure. Dominion and Mubadala will now work together to assess
potential targets, both within Alpha and on other prospects mapped
within the survey area. A more detailed review of Block 7
operations was recently provided in Dominion's Interim Results for
the six months ended 30 June 2011.
Completion of the transaction will follow establishment of
Mubadala's subsidiary and is then subject only to Tanzanian
Government approval.
Andrew Cochran, CEO of Dominion, commented:
"We are very pleased to have Mubadala as a partner in Tanzania
and look forward to building a strategic relationship with them
throughout the region. This agreement demonstrates the value of
Dominion's offshore portfolio, which will benefit significantly
from Mubadala's technical expertise, financial resources and gas
marketing experience. The planned partnership may seek to bring in
another party as we approach Block 7's drilling phase next year,
while Dominion accelerates work on the new acreage in Kenya."
Maurizio La Noce, CEO, Mubadala Oil & Gas, commented:
"This opportunity represents an important step in the continued
growth of Mubadala's international oil and gas portfolio and our
entry into an important, new high-impact exploration province. We
look forward to working with Dominion, with its knowledge and
experience of the region, on this exciting new venture and,
potentially, others in the future."
Mubadala Oil & Gas is a business unit of Mubadala
Development Company with exploration and production interests in
the Middle East, North Africa, and Central and Southeast Asia.
Current net working interest production is in excess of 400,000
barrels of oil equivalent per day (boepd).
PSC signed for Block L15, offshore Kenya
Dominion is pleased to announce that it has signed the
Production Sharing Contract (PSC) for Block L15 in the Lamu Basin,
offshore Kenya, giving the Company a 100% working interest and
operatorship. The Company previously announced the award of L15 on
1st August 2011 through execution of Heads of Agreement with the
Kenyan government. The PSC was signed today by Dominion and the
Kenyan Ministry of Energy in Nairobi.
Dominion will now begin the initial exploration period of the
PSC. The Company will reprocess existing 2D seismic data, carry out
block wide G&G studies and acquire a minimum of 250km(2) of 3D
seismic data in the initial two year exploration period. This will
result in a minimum gross expenditure of $2.85mm. Following this
initial two year period, the Company can enter the second two-year
period by committing to drill a single exploration well. Block L15
lies immediately to the north of Block L8, where the reportedly 1
billion barrel Mbawa prospect shall likely be drilled in mid 2012.
This new Block is on the Davy-Walu structural trend, as is
Dominion's Block L9. The only well in Block L15 is Kofia-1, which
was drilled by Union Oil in 1985 and encountered good oil shows in
the Palaeogene and Upper Cretaceous intervals. Planned drilling by
other operators along the Davy-Walu trend over the next 12 months
may serve to de-risk the prospectivity in both L9 and L15 before
firm drilling commitments are made in either PSC.
Relinquishment of the Selous Block, Onshore Tanzania
The Tanzanian Ministry of Energy and Minerals has formally
accepted Dominion's request to relinquish the Production Sharing
Contract ("PSA") covering the Selous Contract Area, onshore
Tanzania. The Ministry of Energy and Minerals has also allowed
approximately $500,000 of licence and training fees previously paid
by Dominion on the Selous Contract to be used as credit for
Dominion's Block 7, deepwater Tanzania operations.
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 78613112/
Archie Berens +44 (0)7802 442 486
RBC Capital Markets, NOMAD +44 (0)20 7653 4000
Martin Eales
Jonathan Hardy
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUGGBAUUPGGPA
Dominion Pet (LSE:DPL)
Historical Stock Chart
From May 2024 to Jun 2024
Dominion Pet (LSE:DPL)
Historical Stock Chart
From Jun 2023 to Jun 2024
