Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

UPDATE 1-Dominion Petroleum farms out Tanzanian interests

Discussion in 'Habari na Hoja mchanganyiko' started by JuaKali, Sep 11, 2008.

  1. JuaKali

    JuaKali JF-Expert Member

    Sep 11, 2008
    Joined: Nov 14, 2007
    Messages: 787
    Likes Received: 0
    Trophy Points: 33
    LONDON, Sept 11 (Reuters) - Dominion Petroleum Ltd on Thursday said it had agreed to farm out 50 percent of its interest in the Mandawa production sharing agreement (PSA), onshore Tanzania to Etablissements Maurel et Prom SA.

    Maurel & Prom will contribute to Dominion's past exploration costs at the 6,811 square kilometre license area and also pay an equal share of forward exploration costs, including those of the two wells that must be drilled under the PSA.

    The company said it expects to drill the first of these wells, Mihambia-1, in the fourth quarter of 2008.

    Analyst Tim Heeley at brokerage Daniel Stewart said the agreement was not on the most amazing terms, but nonetheless it reduced Dominion's costs whilst not overtly affecting the value of its growing portfolio.

    'With the Mihambia-1 well expected to spud in Q4, a rig has been secured through an M&P subsidiary, news flow will begin for Dominion from this increasingly significant hydrocarbon province,' he said in a note.