dominian - ophir farm out and more, page-4

In March 2007, Dominion Tanzania Limited - a wholly-owned subsidiary of Dominion Petroleum - signed a Production Sharing Agreement which grants rights to explore for petroleum in the offshore Block 7. The First Exploration Period expires in May 2011. Block 7 is located on the continental slope of the Indian Ocean, immediately east of Dar es Salaam and incorporates 8,492 square kilometres (2.10 million acres). Water depths in Block 7 range from less than 400m to more than 2,500m.

In 2008, Dominion completed the acquisition of 4,350 km of 2D seismic, identifying eleven large prospects and leads in a variety of play types in the Jurassic, Cretaceous and shallower Tertiary horizons. The depositional environment in Block 7 is typical of a deepwater basin, with shelfal sands slumping down the continental slope. Consequently, many of the targets are channel-fan systems, with structural and stratigraphic elements, some of which are supported by high amplitude events.

During June 2010, a competent persons report (CPR) was prepared by Energy Resource Consultants Ltd. (“ERC”) on the first prospect in Block 7, which concluded that the "Alpha" prospect has a mean prospective unrisked resource of 1.104Bbbl of oil or 7.069Tcf of gas. ERC have risked the prospect with a 12% Chance of Success (CoS) as a whole (differing CoS for different objectives ranging from 9%-15% within Alpha); net risked mean resource: 134MMbo or 848Bcf. Alpha is in water depths of ca. 4000 feet and represents multiple drilling objectives all the way down to ca. 16,000 feet.
The Alpha prospect was identified by the 2D seismic previously acquired and is supported by amplitude variations with offset ("AVO") studies performed in early 2010.
Between September and November 2010, Dominion completed a ca. 1,000 km2 3D seismic survey covering the Alpha, Beta and three other prospects.
The seismic data is currently being processed which is expected to be complete by Q2 2011. The long offset, 7km streamer, data will support amplitude variations with offset ("AVO") studies, these studies on the existing 2D data have helped de-risk Alpha and Beta already. The final results of the 3D and subsequent analyses will help the Company re-assess volumes and improve chances of success not only for the Alpha prospect but for all prospects mapped within, and immediately adjacent to, the survey area.