30 Nov | Purchase – Dominion Petroleum
Following a tip from a reader a couple of weeks back, we took a closer look at Dominion Petroleum – an independent energy company focused on exploring for new oil and gas reserves in East and Central Africa.
Currently Dominion are active in offshore Tanzania and the Lake Edward Basin in and around the Uganda, Democratic Republic of Congo border.
It’s been a rocky path for Dominion since it was founded in 2004. Trading in Dominion Petroleum was suspended in July 2009 before a US$10 million injection from Blue Gold Hedge Fund got them back on track. They’ve since been back to the market in March 2010 to raise another US$50 million.
In November 2009, Andrew Cochran, a founder of Salamander Energy came on board as CEO. Optimism was high following Tullow Oil’s success in Uganda’s Lake Albertine Graben but when Dominion’s first up well to the south – Ngaji-1 – came up dry in July, shares plummeted to an all time low – below 3.5 pence.
Since then there’s been a slow climb on the back of optimism relating to Tanzania, where gas strikes off Africa’s seldom drilled east coast have raised hopes for Dominion’s 100 per cent owned, deepwater Block-7.
We took up 18,806 shares of Dominion at 5.23 pence share – a mini peak in the price as it turns out.
For those looking for a little more information on where Dominion is at now, check out the Dominion Petroleum video offering on Interactive Investor’s iBall TV or this article on OilBarrel.com (free registration required).
Thanks again for dropping by.