TIDMDPL

RNS Number : 2826E

Dominion Petroleum Limited

05 April 2011

5 April 2011

DOMINION PETROLEUM LIMITED

("Dominion Petroleum" or "the Company")

EXTENSION OF BLOCK 7, OFFSHORE TANZANIA

Dominion is pleased to announce that the company has just been granted a 1 year extension to the Initial Exploration Period for its deepwater Block 7 by the United Republic of Tanzania's Ministry of Energy and Minerals.

The extension to the current period removes any obligation for the company to relinquish any portion of Block 7 until May of next year, providing Dominion with much more time to more fully evaluate the acreage before a mandatory 50% relinquishment at the close of the Initial Period.

Late last year, Dominion acquired a 3-D seismic survey on Block 7 and is presently processing these data in full while interpreting the "Fast Track" volume; the survey was initially focused on the Alpha prospect.

However, the "Fast Track" volume has led to the identification of numerous other prospects of similar scale to Alpha and final processing for the survey is likely to be completed in early May. The company may acquire new 2D, or additional 3D, data this year in the block to mature some of the additional leads and prospects identified since last year's competent persons report (CPR).

A competent persons report (CPR) prepared, in September 2010, by Energy Resource Consultants Ltd confirmed a mean prospective resource of 7Tcf of natural gas, or 1.1 billion barrels of oil, for the Alpha prospect alone. The 3D and recent drilling results in the area have positively impacted the prospectivity of Block 7 in a material way.

In granting the extension, the Ministry noted Dominion's good working track record in Tanzania. The additional time means that Dominion can continue to assess the whole of block, and possibly acquire more data, to better decide how to proceed toward drilling.

Andrew Cochran, Chief Executive of Dominion Petroleum, commented:

"We thank the Government of Tanzania for granting us this extension. It is a validation of the technical work we have done to date and reflects the huge scale in terms of prospectivity that Block 7 represents.

"The extension of the licence will allow us to better formulate plans on a drilling program for our deepwater East Africa portfolio in 2012. As the area becomes more and more competitive by the day our position becomes more and more strategic."

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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