Kiliwani development moves forward

An appraisal location comprising an area surrounding the Kiliwani North No. 1 gas discovery has been agreed between the Nyuni joint venture participants and the Tanzanian authorities.

Offshore staff

PERTH, Australia -- An appraisal location comprising an area surrounding the Kiliwani North No. 1 gas discovery has been agreed between the Nyuni joint venture participants and the Tanzanian authorities.

The joint venture has signed a contract with BGP for a new 2D seismic survey on and around Songo Songo Island. The survey is hoped to provide better definition of the Kiliwani North No. 1 gas discovery, which tested gas at 40 MMcf/d in June 2008.

Discussions relating to the terms of the commercialization of Kiliwani North No. 1 gas are continuing in Tanzania in parallel with the necessary environmental work. It is probable that the discovery will be tied back to the Songo Songo gas processing plant.

Work continues in the evaluation of the West Songo Songo exploration license area, according to Key Petroleum. The area is located between the producing Songo Songo gas field and the Tanzanian coast line. The license is prospective for Neocomian structural traps as per the Songo Songo and Kiliwani North fields, as well as an untested shallower stratigraphic play in Campanian age sediments. Analysis of seismic reflections over the Campanian fairway is consistent with the presence of light hydrocarbons, the company says.

"We look forward to receiving the results of the Kiliwani North seismic survey," says Ken Russell, Key Petroleum's CEO and MD. "This survey should provide further important information required for the commercialization of Kiliwani North."

05/22/2009

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