The Production Sharing Agreements (PSA) in Tanzania were awarded by the Government of the United Republic of Tanzania on 20 February 2012, with the overall Kilosa-Kilombero and Pangani acreage covering a gross area of almost 34,000 km2. The acquisition of the two exploration licence areas is consistent with Otto's strategy to obtain acreage in prospective areas on attractive terms at the beginning of the exploration lifecycle.
Following the award of the PSA's in 2012, the joint venture partners conducted analysis of legacy gravity and magnetic data, followed by acquisition of new airborne gravity and magnetic data. Analysis of this data confirmed the presence of a significant sedimentary basin at Kilosa- Kilombero and the possibility of a significant sedimentary basin at Pangani. In 2013, the joint venture undertook a 2D seismic program over both exploration licence areas, which yielded very positive results indicating Neogene aged basins in both Pangani and Kilosa-Kilombero, analogous to recent discovery areas in Kenya and Uganda. In February 2014, the joint venture partners agreed to enter into Years 3 and 4 of the agreement, involving a commitment to drill one exploration well in each contract area before February 2016 and the acquisition of additional seismic data to allow optimal well positioning.