Farm Out of Onshore Tanzanian Interests

 

TIDMDPL 
 
RNS Number : 1219H 
Dominion Petroleum Limited 
15 February 2010 
 

15 February 2010 
 
                          Dominion Petroleum Limited 
                         ("Dominion" or the "Company") 
 
                    Farm Out of Onshore Tanzanian Interests 
 
The Board of Dominion Petroleum is pleased to announce that agreement in 
principle has been signed with Les Etablissements Maurel & Prom ("M & P") to 
farm in to the Mandawa and Kisangire PSAs (Production Sharing Agreements) 
subject to execution of final agreements. Parts of the agreements are subject to 
certain conditions precedent, including approval by the Tanzanian Ministry of 
Energy and Minerals and the Tanzanian Petroleum Development Corporation. 
 
Under the final agreements, M & P will acquire: 
 
·    a 40% interest in the Mandawa PSA onshore Tanzania , resulting in M & P 
owning 90% of the Mandawa licence and Dominion's interest being reduced to 10%; 
and 
 
·    a 35% carried interest in the Kisangire PSA onshore Tanzania (operated by 
Heritage Oil, who own a 55% interest), reducing Dominion's interest to 10%. 
 
In return for these additional interests being acquired by M & P, Dominion's 
funding requirement in respect of the Kianika-1 well on the Mandawa licence will 
be reduced from 100% to 20% of the drilling costs and to 10% of associated 
expenses.   Dominion will retain a 10% interest in all profits earned from the 
Mandawa licence. 
 
In addition, M & P's interest in the Mandawa licence will rise to 100% upon the 
Government of Tanzania agreeing that exploration expenses incurred on other 
licences can be carried over to the Mandawa licence. At this point, all of 
Dominion's costs relating to the Kianika-1 well on the Mandawa licence will also 
be reimbursed. 
 
In addition to approval by the Tanzanian Government, the agreement is also 
subject to certain other conditions, including the assumption by M & P of the 
operatorship of the Mandawa licence and confirmation by Heritage of the upcoming 
exploration program. 
 
Andrew Cochran, Chief Executive of Dominion, commented: 
 
"This agreement with Maurel & Prom constitutes active portfolio management and 
is part of the corporate repositioning recently undertaken. It significantly 
reduces Dominion's financial commitments for 2010 and allows us to focus more 
attention on our higher impact exploration assets in Uganda and Offshore 
Tanzania. We plan to increase activity in these two core areas during the course 
of this year." 
 
ENQUIRIES: 
+----------------------------+-------------------------------+ 
|                            |                               | 
| Dominion Petroleum Limited |                               | 
+----------------------------+-------------------------------+ 
| Andrew Cochran, Chief      | [phone]          | 
| Executive Officer          |                               | 
+----------------------------+-------------------------------+ 
| Rob Shepherd, Finance      |                               | 
| Director                   |                               | 
+----------------------------+-------------------------------+ 
|                            |                               | 
+----------------------------+-------------------------------+ 
| Pelham Bell Pottinger      |                               | 
+----------------------------+-------------------------------+ 
| Archie Berens              | [phone] / +44     | 
|                            | (0)7802 442 486               | 
+----------------------------+-------------------------------+ 
|                            |                               | 
+----------------------------+-------------------------------+ 
| Seymour Pierce Limited,    |                               | 
| NOMAD                      |                               | 
+----------------------------+-------------------------------+ 
| Nandita Sahgal,            | [phone]           | 
| Christopher Wren           |                               | 
+----------------------------+-------------------------------+ 
|                            |                               | 
+----------------------------+-------------------------------+ 
| Canaccord Adams Limited,   |                               | 
| Joint Broker               | [phone]           | 
| Jeff Auld, Eli Colby       |                               | 
+----------------------------+-------------------------------+ 
|                            |                               | 
+----------------------------+-------------------------------+ 
| Mirabaud Securities LLP,   | [phone]          | 
| Joint Broker               |                               | 
| Peter Krens                |                               | 
+----------------------------+-------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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