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08/09/08 Caroil choisi par Dominion pour le forage

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Tanzania: Dominion contracts a rig for first exploration well


Dominion Petroleum Limited has announce that its wholly owned subsidiary, Dominion Oil and Gas Ltd, has agreed and signed a contract for a drilling rig for the Mihambia-1 well with Caroil S.A.S., a subsidiary of Maurel et Prom of Paris, France. The Mihambia-1 is the first commitment well on the Mandawa PSA.

Dominion anticipates that mobilisation of the Caroil 6 rig to the Mihambia-1 well will commence in November. The rig is currently contracted by Maurel et Prom to drill two wells near the M'Kuranga discovery made in 2007 in the Bigwa PSA area in Tanzania, after which it will mobilize to Dominion's location.

The Mihambia-1 well is being drilled vertically in the central part of the Mandawa PSA area to Middle to Lower Jurassic reservoir targets. The rig is anticipated to take up to 45 days to reach total depth of between 2,300m and 2,800m. Site preparation, including construction of a 25 km access road, is near completion. All materials are now stored in warehouse facilities in Kilwa.

RPS Energy, who prepared Dominion's Competent Person's Report (CPR) for the Company's admission to the AIM Market in December 2006, estimated mean unrisked resources of 176 million barrels of oil for this prospect (Mihambia-D), with an associated chance of success of 11% at the time of the CPR.

Following the interpretation of additional 2D seismic acquired over this prospect in 2007, Dominion's current un-audited reserve range of combined P50 cases for multiple reservoir targets is between 38 and 224 million barrels.

Mike Garland, Chief Executive Officer of Dominion, said: 'Dominion is pleased to have concluded the rig contract negotiations with Caroil SAS. As the first operated well for Dominion, we are very excited about Mihambia-1 and pleased with the progress made in order to achieve this major milestone for

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