Democratic Republic of Congo

Regional Geological Siting Regional Geological Siting PAO signed a “Protocole d’Accord” (Memorandum of Understanding) in July 2012 with the DRC Ministry of Hydrocarbons for two blocks in the Lake Tanganyika rift basin (Figure 3). The two blocks, Kalemie and Fatuma, cover an area of 4,205 square kilometres. PAO operates with a 47% working interest and is partnered with Alberta Oil Sands (47% working interest), and Uprising SPRL, an indigenous DRC company (7% working interest).

The Lake Tanganyika Rift Basin is part of the East Africa Rift System (EARS), a series of basins that spans several thousand kilometres from the Red Sea in the north to Mozambique in the south. The EARS is a very young rift (Miocene to Recent), but with the substantial volume of sediment deposited within the rifts combined with high heat flows and excellent quality oil-prone source rock, there is a potential for significant volumes of hydrocarbons to be generated.

Location of MOU BlocksLocation of MOU Blocks

 

Interest in the EARS has been steadily increasing, and substantial volumes of oil have already been discovered in Uganda and more recently in Kenya. PAO has recognized that the very prolific and oil-prone petroleum system that has been identified in both areas is very likely to extend along the entire length of the EARS. A number of companies have picked up blocks along the rift basins south of Uganda, but very few have been active in the DRC. Pan African Oil, through its business connections in the DRC, was able to secure the MoU in advance of what we believe will be a high level of industry interest in the basin.

The MoU requires a preliminary technical assessment of the blocks using all available data. PAO has employed its internal resources to conduct geophysical studies and to co-ordinate the data compilation.  PAO has contracted a qualified service provider with a full suite of technical experts who have completed a high quality regional geological study including a surface structural interpretation, a sediment provenance study for the lake and a satellite oil slick study over the lake surface. Our technical work is now largely completed.  Additionally through the Ministry and other institutions, we may conduct a geological field trip to Lake Tanganyika in the vicinity of the two blocks and the results from this trip will be incorporated into the final report and recommendations.

Upon completion of the MoU work program should the geological assessment be positive, PAO will enter into negotiations with the DRC government for a Production Sharing Agreement. It is expected that the work program obligations will include the acquisition of 2D seismic data and further geological studies in the first phase of exploration.