Dominion drills duster in Uganda

DOMINION HAS REPORTED that the Ngaji-1 well was drilled to total depth ("TD") at 1765m; the results were inconclusive as it did not identify any significant hydrocarbons.

The well, the first ever drilled in the Lake Edward Graben, was designed to test the geology of the basin and will see a full suite of logging, coring and a vertical seismic profile will be acquired. These results will support the layout and design of the 2D seismic programme later this year and subsequent exploration drilling next year. Furthermore, the Ngaji-1 well may be suspended to provide for possible deviated drilling under Lake Edward next year to test a lead down-dip of the current location.

Andrew Cochran, Chief Executive, stated, "We are pleased with the geology observed in Ngaji as it demonstrates key elements of a prospective basin which had otherwise been fundamental risks in the Lake Edward Graben of Uganda and D.R. Congo. While stronger indications of hydrocarbons were hoped for, the well supports our planned exploration programme for the whole basin in both countries over the next couple of years. As part of that programme we should see seismic operations start in the fourth quarter of 2010 and a resumption of drilling in 2011."



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