Dominion Petroleum Spuds Ngaji-1 well in Uganda

Dominion Petroleum provides an update on Uganda Exploration Area 4B (Dominion Uganda Ltd 100%, Operator).

The John-14 rig was transported without incident to the drilling site on the Ngaji (Silverback) prospect in May and June. The Ngaji location was chosen as it was deemed the best place to test the geology of the Lake Edward Basin in Uganda; specifically designed to identify elements of a working petroleum system. The well was spudded this week, targeting a depth of 2,000 m, and should be completed during July. Dominion has put in place a full Emergency Response and Evacuation Plan with teams at the site, Kampala and London.

An Environmental and Social Impact Assessment for a follow-on seismic programme has also been initiated for subsequent appraisal work on the acreage later in the year, followed by more drilling in 2011.

Andrew Cochran, Chief Executive of Dominion Petroleum said, "We are very pleased to announce that drilling has commenced on Ngaji yesterday. This is the first well ever in the Lake Edward Basin and the data gathered will guide our future work in the area.

"If the well is encouraging in terms of geology we will acquire additional seismic before year's end to support a much expanded exploration and appraisal drilling program commencing early next year."

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