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.

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.

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."

Tags: Dominion Petroleum Limited