Dominion Petroleum Provides Update on Block 7 Farmout

Source: 12/6/2011, Location: Africa

On 5 October 2011, Dominion announced the farm-out of a 20% working interest in Block 7, deepwater Tanzania to a Mubadala Oil & Gas company (Mubadala). Dominion can now confirm that, following unconditional approval of the farm-out by the Government of Tanzania, all matters required for the farm-out to Mubadala have been completed. The monies payable by Mubadala in relation to the farm-in, amounting to US$20 million, are due to be paid on or before the Closing Date, which is 15 December 2011.

Dominion also announces that it plans to commence the acquisition of 2-D seismic data on Block 7 in early 2012. At least 1,000 square kilometres of data will be acquired further offshore than last year's 3D survey. The purpose of the survey is to define additional prospects in the deeper water portion of Block 7. The 2D survey is also intended to aid refinement of the partial relinquishment pattern for Block 7 that is required at the end of the first Period of this licence.

Mubadala Oil & Gas is a business unit of Mubadala Development Company with exploration and production interests in the Middle East, North Africa, and Central and Southeast Asia. Current net working interest production is in excess of 400,000 barrels of oil equivalent per day (boepd).

Andrew Cochran, CEO of Dominion, commented:
"I'm pleased to have received Tanzanian government approval for the farm-out of Block 7 to Mubadala so the deal will close shortly. Mubadala's participation has validated the prospectivity of the acreage and our work on the Block to date. In Mubadala, we have a partner with considerable resources as well as exploration and commercial expertise."

Update On Acquisition By Ophir Energy

As announced on 13 October 2011, Ophir Energy plc (Ophir) has made a recommended offer for the entire issued and to be issued share capital of Dominion (the "Acquisition"). The Acquisition is to be implemented by way of a scheme of arrangement under section 99 of the Companies Act 1981 of Bermuda (the "Scheme"). The scheme document containing further information about the Scheme was posted by Dominion to its shareholders on 16 November 2011 and the Prospectus issued by Ophir in relation to the New Ophir Shares to be issued to Scheme Shareholders pursuant to the Scheme was published on 2 December 2011 and made available on that date on Ophir's website.

The Acquisition remains subject to a number of Conditions, including clearance from the Kenyan Competition Authority (KCA) and the Tanzanian Fair Competition Commission (TFCC) and the consent of the Republic of Kenya's Minister of Energy. As announced on 16 November 2011, formal submissions have been made to the KCA and the TFCC seeking clearance in respect of the Acquisition. Dominion and Ophir are in the process of seeking the consent of the Republic of Kenya's Minister of Energy to the Acquisition. Dominion will update the market when formal responses have been received.

The Acquisition is also subject to the requisite approvals being obtained from Dominion Shareholders at the Court Meeting and the General Meeting of Dominion Shareholders convened for 10 a.m. (Bermuda time) and 10.15 a.m. (Bermuda time) respectively on 12 December 2011. The results of those meetings will be announced to the market shortly thereafter.

Subject to satisfaction of the Conditions referred to above and, amongst other things, the sanction of the Court, it is expected that the Acquisition will be effected in accordance with the indicative timetable of principal events set out in the Scheme Document with the Scheme expected to become effective on 20 January 2012.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

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