Dominion Petroleum Limited is pleased to announce the results of an independent audit of its prospective oil resources in Uganda (“Exploration Area 4B” or “EA4B”), which indicates the mean unrisked oil-in-place in four identified prospects to be 1,715 million barrels (“MMbbl”) and the mean unrisked gross recoverable resource to be 378 MMbbl.
Exploration Area 4B in Uganda is located in southwestern Uganda in the Lake Edward segments of the Albertine Rift Basin. The adjacent segment of the Rift Basin – Lake Albert – has been the site of several major oil discoveries in the last three years including those of Kingfisher, Warthog and Buffalo-Giraffe. In November 2008, Dominion completed the acquisition of 371km of 2D seismic data onshore and 130km on Lake Edward. The company has also carried out extensive field studies including seep sampling and analysis. The results have been interpreted by Dominion and audited by ERC Energy Resources Consultants Limited (“ERC”) using the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System.
In EA4B, Dominion has to date identified four prospects and 11 leads. The prospects are adequately defined by the existing seismic and may be considered ready for drilling. The leads require the acquisition of further seismic. ERC’s estimates are as follows:
• Mean unrisked oil-in-place in the four prospects of 1,715 MMbbl;
• Mean unrisked gross recoverable resource of 378 MMbbl (net 359 MMbbl to
Dominion), compared with Dominion’s own estimate of 355 MMbbl;
• Largest prospect contains mean unrisked oil-in-place of 482 MMbbl and 127 MMbbl mean unrisked gross recoverable oil resource;
• 45% chance of a working hydrocarbon system in the area; and
• Between 15% and 22% individual chances of success for the prospects.
Dominion separately estimates the gross recoverable resource in the 11 leads to be 782 MMbbl.
Exploration Area 4B is held under a Production Sharing Agreement by a subsidiary of Dominion Petroleum Limited - Dominion Uganda Limited (licence interest 100% and operator). Within the first two-year exploration period, Dominion Uganda Limited was obliged to acquire 300km of seismic data (completed). Dominion has applied to enter the second two-year exploration period, which will start in July 2009, during which it will be required to drill at least one exploration well.
Justin Dibb, Chief Executive Officer of Dominion, said:
“ERC have extensive experience of auditing oil resources in Uganda. This Competent Person’s Report covering EA4B represents independent confirmation of the Company’s view that there is very significant oil potential in the Exploration Area. As previously indicated, Dominion needs to raise additional funding for an exploration drilling campaign to start in early 2010 and to that end is in discussions with potential investors, both trade and financial, as well as with its existing loan-note holders. Notwithstanding the continuing difficult financing environment, Dominion is optimistic that the potential it has identified in Block EA4B and which is emphasized by ERC in their report will enable it to secure the funds required to pursue this significant opportunity.”
In accordance with the AIM Rules, the technical information in this release has been reviewed and signed off by Dr. Andrew Robinson, who is Exploration Director at Dominion and has over 20 years relevant experience within the sector. He consents to the information in the form and context in which it appears.