Farm Out of Onshore Tanzanian Interests
February 15 2010 - 1:00AM
UK Regulatory
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 | +44 (0) 20 7811 5300 |
| Executive Officer | |
+----------------------------+-------------------------------+
| Rob Shepherd, Finance | |
| Director | |
+----------------------------+-------------------------------+
| | |
+----------------------------+-------------------------------+
| Pelham Bell Pottinger | |
+----------------------------+-------------------------------+
| Archie Berens | +44 (0)20 7337 1509 / +44 |
| | (0)7802 442 486 |
+----------------------------+-------------------------------+
| | |
+----------------------------+-------------------------------+
| Seymour Pierce Limited, | |
| NOMAD | |
+----------------------------+-------------------------------+
| Nandita Sahgal, | +44 (0)207 107 8000 |
| Christopher Wren | |
+----------------------------+-------------------------------+
| | |
+----------------------------+-------------------------------+
| Canaccord Adams Limited, | |
| Joint Broker | +44 (0)207 050 6500 |
| Jeff Auld, Eli Colby | |
+----------------------------+-------------------------------+
| | |
+----------------------------+-------------------------------+
| Mirabaud Securities LLP, | +44 (0) 207 321 2508 |
| Joint Broker | |
| Peter Krens | |
+----------------------------+-------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGRMMGMZRDNGGZM
Dominion Pet (LSE:DPL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dominion Pet (LSE:DPL)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Dominion Pet (London Stock Exchange): 0 recent articles
More Dominion Pet News Articles