From http://www.petroleumnews.net/storyview.asp?StoryID=561393In...

From http://www.petroleumnews.net/storyview.asp?StoryID=561393

In the Nyuni area, Key Petroleum and its joint venture partners are continuing negotiations with Tanzanian Petroleum Development Corporation and the Ministry of Energy to reach a commercialisation agreement for the Kiliwani North gas discovery.

Obviously this is what the delay is. Not current economic climate.

Full article....

Tanzanian block Key to high potential

Friday, 6 February 2009

KEY Petroleum says it believes the West Songo Songo block, offshore Tanzania, has the potential to contain a prospective resource of about 735 million barrels of oil or 1.3 trillion cubic feet of gas.

The Perth-based company said the estimates were attributed to detailed geological studies since winning the licence in May last year.

Key holds a 50% interest in the West Songo Songo licence, held equally with United Kingdom-listed Aminex.

Aminex also operates the nearby Nyuni block directly east of the Songo Songo field, in which Key holds a 20% interest.

The West Songo Songo licence borders the Mandawa licence area, operated by Dominion Petroleum.

Dominion recently started drilling the Mihambia-1 well, which, if successful would be Tanzania’s first onshore oil discovery.

Key believes the Mihambia tenement could have important strategic implications as it has geologically similar targets as West Songo Songo.

In the Nyuni area, Key Petroleum and its joint venture partners are continuing negotiations with Tanzanian Petroleum Development Corporation and the Ministry of Energy to reach a commercialisation agreement for the Kiliwani North gas discovery.

“Whilst the Kiliwani North-1 gas find is exciting, there are still a number of steps needed on the way to reaching economic returns from the gas pool,” Key Petroleum chief Ken Russell said.

“However, Key is confident that progress will occur.”