Dominion Petroleum Ltd. in a Promising Quest for Hydrocarbons Offshore Tanzania

June 29, 2010

Dominion announced the results of a competent persons report (CPR) on the first prospect in Block 7, offshore deep-water Tanzania.

The “Alpha” prospect has a mean prospective resource of 1.104Bbbl of oil or 7.069Tcf of gas, based on the CPR recently concluded by Energy Resource Consultants Ltd. (ERC). 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 existing 4,350 kilometers of 2D seismic coverage and is supported by amplitude variations with offset (“AVO”) studies performed this year. This is only the first prospect in the block and the CPR work undertaken on Alpha was intended to assist in planning a ca. 1,000km sq 3D seismic survey. This survey should begin next month and should take approximately 60 days to acquire. Once completed, Dominion will initiate further work on the other prospects and leads already identified in the 2D seismic.

Andrew Cochran, CEO of Dominion, commented:

“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.”

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.

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Source: Dominionpetroleum, June 29, 2010: