The Alpha prospect is only the first in the block and the CPR work undertaken on Alpha was intended to assist in planning a 1,000 sq km (square kilometre) 3D seismic survey, set to begin next month. This will be followed by further work on the other prospects and leads already identified in the 2D seismic. Energy Resource Consultants (ERC), which prepared the CPR, risked the Alpha prospect with a 12% chance of success. The net risked mean resource was estimated at 134 MMbo (million barrels of oil) or 848 Bcf.
Alpha is in water depths of 4,000 ft (feet) and represents multiple drilling objectives all the way down to 16,000 ft.
“This is an excellent start and it demonstrates the 'world class' nature of Block 7 in terms of hydrocarbon potential. The Alpha prospect is not unique, nor even the largest so far identified, within Block 7 but simply the most robust prospect to guide our continued work in the area. Once armed with the upcoming 3D we will carry out additional technical analyses and update the full prospect and lead inventory accordingly,” said chief executive of Dominion Petroleum Andrew Cochran.
The company has also reported the spudding of the Kianika-1 well in its Mandawa PSA, also in Tanzania, targeting a 264 Bcf gas prospect at a depth of 9,000 ft with a 9% chance of success. Dominion has retained a 10% interest in the project after farming out the remaining 90% to Les Establissment Maurel et Prom (M&P) as part of its efforts to focus on “higher-impact projects elsewhere in the portfolio.”
The block, which is adjacent to Dominion’s Exploration Area 4B (EA4B) in Uganda, is located in the Albertine Rift system and includes the DRC’s portion of the prolific Lake Edward Basin. The partners may seek to acquire 2D seismic this year in conjunction with similar activities planned by Dominion in EA4B later in 2010. Dominion holds a 46.75% stake in the project.
During the initial five year exploration period, Soco and Dominion have committed to acquire at least 300 km of seismic data and drill two exploration wells.
Earlier this month, Dominion spudded the Ngaji-1 well on Block EA4B at a location that the company said was best to test the geology of the Lake Edward Basin with the aim of identifying elements of a working petroleum system.
Data from this well, which is expected to be completed in July, will guide the company’s future operation in the area. Dominion has said that it has so far made “significant progress” in drilling the well.
Dominion has also initiated an environmental and social impact assessment for a follow-up seismic programme for subsequent appraisal work on the acreage later in the year, followed by more drilling in 2011. The company added that all of its operational plans announced in March have so far met its expectations in terms of safety, schedule and cost.
The Ngaji prospect has an unrisked resource of 100 mmbbls (million barrels) of oil. The well is located in an area comparable to that of the Buffalo-Giraffe discovery in Exploration Area 1, reported to contain around 400 mmbbls of recoverable oil.
The company has been able to attract new funding through placings that brought in US$10 million in August 2009 and another US$50 million in March 2010, giving it the means to finance its active 2010 drilling campaign.
“Dominion has a commanding position throughout the Lake Edward and a substantial exploratory program underway in the basin already, so we will no doubt hit the ground running,” said Cochran.
Shares in the company rallied 8.5% on today's news.
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