Dominion Petroleum announced that together with partners SOCO International plc and State Oil Company Congolaise des Hydrocarbures, it has signed a Production Sharing Agreement with the Government of Congo. The new PSA gives the two companies exclusive rights to explore for petroleum in Block 5 in eastern DRC next to the border with Uganda. Dominion will operate the exploration activity and holds a 46.75% participating interest through its subsidiary Dominion Congo Limited, with SOCO subsidiary SOCO Exploration and Production DRC SPRL holding 38.25% and COHYDRO with the remaining 15% of the participating interest. The PSA is subject to and becomes effective upon ratification by the President of DRC.
Block 5 incorporates 7,105 km2 of land and lake areas. It lies to the west of and includes part of Lake Edward and adjoins Block 4B in Uganda where Dominion has carried out exploration activity as operator since July 2007 (100% working interest). Both Blocks are part of the Albertine Rift system of sedimentary basins where significant oil discoveries have been made in 2006 and 2007.
The first phase of the PSA lasts for 5 years, during which Dominion and partners will carry out geological and geophysical work, acquire at least 300km of seismic data, and drill two exploration wells. The PSA is renewable for two further five-year terms.
