Oil search intensifies in Lake Tanganyika

                                                 Lake Tanganyika

Thursday, 17 January 2013 23:00

The Citizen Correspondent & Agencies Kinshasa. Oil exploration activities continue to take place in the Lake Tanganyika side of Democratic Republic of Congo (DRC). Alberta Oilsands Inc. has completed its transaction with a subsidiary of Pan African Oil Ltd. (PAO) to jointly pursue a PSA with respect to two blocks, the Kalembe Block (Block 5) and the Fatuma Block (Block 6), in which the firm may earn a 43.75 per cent interest in the DRC Blocks. PAO will remain the operator of the blocks. The DRC Blocks comprise over one million acres covering the Kalemie sub-basin on Lake Tanganyika (DRC side) and are in the heart of the EA Rift System. Blocks 5 and 6 are adjacent to acreage held by Total. Oil exploration activities also continue on Tanzania’s side of Lake Tanganyika basin with signals discovery of significant amount of oil, according to latest report of Tanzania Petroleum Development Corporation (TPDC). As consideration for the closing, the company has paid to PAO an aggregate cash consideration of $1 million and issued five million common shares in the capital of the company at an attributed value of $0.10 per common share. The cash consideration will primarily be used to pay for the past and anticipated upcoming costs and expenses of pursuing the PSA, up to the full amount of the cash consideration, after which time costs and expenses will be shared equally by AOS and PAO.