|The Company has four projects in Ethiopia consisting of blocks 7 & 8 in the Ogaden Basin Area of eastern Ethiopia, the Adigala Block is close to the border with Somalia and Djibouti, the South Omo Block which lies in the Omo Rift Valley of south-western Ethiopia and the Rift Basin Area located north of the Company's South Omo Block.|
The Ogaden Basin Area blocks are relatively underexplored with limited well and seismic data to constrain the petroleum system proved by the Calub and Hilala fields to the east. The Adigala block is a wildcat opportunity with no wells in the area. An analogue petroleum system is predicted based on nearby outcrop data and field surveys. The South Omo Block Area is within the Tertiary age East African Rift, just north of Lake Turkana, Kenya and within the same petroleum system as the Company's Kenya Block 10BB and Tullow's Uganda discoveries.
The Adigala block Area lies in the north of Ethiopia within the East African Rift Valley System, in the Afar Depression. Regional geophysical data tends to suggest a sedimentary basin on-trend with the Jurassic Basins of Somalia. New isostatic residual shows two (probable Jurassic) basins in the Adigala concession. Cretaceous reservoirs and potential Jurassic source intervals are exposed at the surface in the uplifted highlands to the south and east of the Adigala Area. Oil seeps in the surrounding areas also indicate the presence of a working oil prone system in the region. One Jurassic outcrop represents an exhumed oil accumulation with Jurassic dolomites oil saturated and bleeding live oil which was recovered for laboratory analysis. The subsurface prospectivity of Adigala remains unknown.
South Omo lies in the Omo Rift Valley of south-western Ethiopia. The block spans 30,688 square kilometres and is within the Tertiary age East African Rift, just north of Lake Turkana, Kenya and within the same petroleum system as the Company's Kenya Block 10BB and Tullow's Uganda discoveries.
Rift Basin Area is located north of the Company's South Omo Block and includes the extension of the Tertiary-age East Africa Rift Trend in Ethiopia. The new license is on trend with highly prospective blocks in the Tertiary rift valley including the South Omo Block, and Kenyan Blocks 10BA, 10BB, 13T, and 12A. During the joint study period, the Company completed an airborne high resolution gravity and magnetic survey over the block. In addition, satellite-imaged natural oil slicks were ground truthed, which indicate the presence of an active petroleum system in parts of the block. The Company plans to complete a Full Tensor Gravity Gradiometry survey and exhaustive environmental/social impact assessment over the block during 2013.