PCL's Block L8 gets a mention in this article........
"Dominion believes that its assets may be de-risked further in the next twelve months, thanks to nearby exploration drilling.
The new asset, Block L15, lies immediately to the north of Block L8 where a consortium that includes Tullow Oil (LON:TLW) is expected to drill a well on the Mbawa prospect, estimated at 1 billion barrels, next year."
Full Article: -------------------------------------------
Dominion Petroleum snaps up new Kenyan acreage and walks away from Malta deal
8:29 am by Jamie Ashcroft
Dominion Petroleum (LON:DPL) told investors that it will not complete its proposed deal with Mediterranean Oil & Gas (LON:MOG) to earn-in to exploration assets in Malta.
At the same time it revealed that it has a strengthened position in East Africa, ahead of key farm-out talks, after it acquired more acreage offshore Kenya. It has successfully concluded negotiations with the Kenyan government and it has been awarded 'Block L15' in the Lamu Basin.
East Africa has become a major hydrocarbon hotspot of late following a series of major gas discoveries in the region - made by Anadarko (NYSE:APC), Cove Energy (LON:COV), BG (LON:BG.) and Ophir (LON:OPHR).
Dominion's plan is to tie-up a major partner so it can progress a drill programme of its own. Crucially the company believes that its newly expanded acreage could attract even more 'industry interest' and it can now adopt a partnering strategy for these assets.
Chief executive Andrew Cochran said: "We are delighted to add Block L15 to Dominion's East Africa deepwater exploration portfolio, one of the most sought after addresses in the exploration industry these days.
"The region is seeing both growing attention from, and accelerated activity by, major players with Kenya now due for deepwater drilling within the next year following the last year's successes in Tanzania and Mozambique.
"Dominion's new award represents a material expansion of an already enviable deepwater East African portfolio. We can now focus our attentions on the business of exploring these blocks, realizing their true value and embarking on substantive discussions with potential partners to establish plans for drilling."
The company expects to formally sign a production sharing contract (PSC) in Nairobi in the coming weeks. Dominion will be the operator of Block L15 and it will have a 100 per cent stake in the block.
A well was previously drilled on the area covered by Block L15, back in 1985, by Union Oil which encountered good oil shows in the Palaeogene and Upper Cretaceous intervals.
Dominion believes that its assets may be de-risked further in the next twelve months, thanks to nearby exploration drilling.
The new asset, Block L15, lies immediately to the north of Block L8 where a consortium that includes Tullow Oil (LON:TLW) is expected to drill a well on the Mbawa prospect, estimated at 1 billion barrels, next year.
The proposed PSC will have an initial two year exploration period, with a minimum work commitment of US$2.85 million and the acquisition of 250 square kilometres of 3D seismic data.
Beyond this initial two year period Dominion can extend the PSC further by committing to drill a well on the block.
The company believes that the terms and the commitments for L15 compare very favourably to other countries in the region, relative to the block's potential resource.
Meanwhile Dominion confirmed that it will no longer pursue its deal with Mediterranean Oil & Gas. The initial farm in deal was agreed in late June and alongside the proposed acquisition Dominion planned a US$50 million equity raise.
However last week the company's investors shot down the proposal, with the funding failing to get the required support in a shareholder's vote. Dominion will now have to pay MOG a US$225,000 termination fee.
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