Key Petroleum Announces Producing Asset Sale with Exploration Upside Offshore Tanzania

Key Petroleum Limited is seeking to fully divest its interests in the West Song Songo project, offshore Tanzania.
Overview:
Key Petroleum Limited, West Songo Songo PSA (50% interest), Nyuni PSA (20% interest)
Spectacular recent oil and gas discoveries announced with Anadarko's first East African well, Windjammer- 1 (Oligocene fan with a 365 m gas column) East of Mozambique; Sino Union Energy Investment Group's 2009 SKL-2 oil discovery (estimated resources of 2 billion barrels) in Block 3113 onshore Madagascar, and earlier gas discovery, such as Key Petroleum's' Kiliwani North-1, have excited the industry and drawn attention to the huge hydrocarbon potential of East Africa.

Key Petroleum seeks to fully divest its interests in both the Nyuni and West Songo Songo PSA areas on the Tanzania Shelf. The acquisition of Key's interests encircling the producing 1 Tcf Songo Songo gas field, offers a lower cost entry to develop and explore for gas and liquids in this emerging province.

The Kiliwani North gas field (60 m Neocomian gas column that flowed 40 Mscf/d) is a near term production project, requiring a short onshore tie-back to existing facilities.
Local and export gas markets provide further opportunities for new discoveries. Combined, unrisked, in place resource potential for the West Songo Songo and Nyuni PSA areas exceeds 2 Tcf.

Scattered oil seepages along the coast, and on offshore islands, suggest liquids potential yet to be realised.
Exploration play-types are conventional structural Neocomian features as well as amplitude-supported Campanian (West Songo Songo PSA) and Palaeocene (Nyuni PSA) stratigraphic leads.