1. THE OPPORTUNITIES FOR PETROLEUM EXPLORATION IN UGANDABy
Reuben J. Kashambuzi
and
Ernest N.T. Rubondo
Presented at the Annual Convention of the American Association of Petroleum Geologists (AAPG)
Salt Lake City, Utah
May 2003

2. PRESENTATION 1. Background
2. Geological Setting and the East African Rift System
3. The Petroleum Potential of the Albertine Graben
4. Licencing Regime
5. The Opportunities
6. Conclusion

3. UGANDA LOCATION AND FACTS ABOUT UGANDA UGANDA Uganda is a Republic
Latitude: 04° 12’ N & 01° 29’ S
Longitude: 29° 34’ E & 35° 00’ W
Uganda is a Republic
Total Area:
241,038 sq. Km
Population:
24.7 million (2002)
Capital City:
Kampala
Literacy rate:
63%
Religions:
Roman Catholic,
Protestant,
Muslim,
Indigenous beliefs
Altitude:
Minimum: 620 meters
Maximum: 5,110 meters
UGANDA
Climate:
Temp Range 15-30°C
Mean Temp. 220C
Annual rainfall ,000mm
Per Capita GDP (2002): US$ 230
Total Exports(2001): US $ 452 m
Total Imports(2000): US $1.54 bn
Imports of Petroleum Products: Approx US $ 160m
Source: Uganda Bureau of Statistics &
Uganda Investment Authority

4. Tectonic Map of Africa

5. EAST AFRICAN RIFT SYSTEM (EARS)
L. Albert
Bifurcates near the Tanganyika shield into the Eastern and Western Branch
Showing HC occurrences
High TOC lacustrine shales in the Turkana area, the Albertine Graben and the Lake Tanganyika Area.
Adopted from Morley, 1999

6. East African Rift System and Albertine Graben
Kampala
Dar-Es-Salaam
Mombasa
ALBERTINE GRABEN
1.1 A Tertiary rift basin approx. 23,000 sq.km each in Uganda and D.R.C.
1.2 About 1,600km from Mombasa and accessible by road, railway and air.
1.3 Hotels (some 3 star) and lodges available.
1.4 Tourist areas:
Semliki Wildlife Reserve;
Ajai Wildlife Reserve;
Obongi Wildelife Reserve
Queen Elizabeth National Park;
Murchison Falls National Park;
Rwenzori National Park;
Semliki National Park and
1.5 It consists of five (5) Exploration Areas at different
stages of exploration.
1.6 Numerous oil seeps present

7. GEOLOGICAL SETTING.
3.1: The Albertine Graben is the northermost segment of East Afr Rift System.
3.2: Bounded by high angle dip-slip and oblique-slip fault systems forming an asymetrical basin that deepens on the D.R.C. side.
3.3: Fault plane dip 60-80Deg.
3.4: Depths to pre-rift basement are estimated to reach 6000m.
3.5: Structural style characterized by extensional rifting but seismic suggests compression in lower parts of the basin.
3.6: Basin development dates to Miocene.
3.7: Normal faults are en echelon and linked by oblique transfer faults.
3.8: Boundary fault throws vary from m and may exceed 3000m.
3.9: There’s noticeable volcanic activity in Lake Edward-George basin, but absent in other parts of the Graben.
Sebugoro Formation
m of Sandstone, siltstone, diatomic, shale, fossiliferous and calcitic ironstone.
Kaiso-Tonya Shale
Kisegi Formation
m of Sandstone

8. GEOLOGICAL SETTING.
3.10: Aeromagenetic survey of 1983/84 and subsequent ground gravity and magnetic follow up indicate that the Albertine Graben is divided into a number of sub-basins with depocentres in L. Edward, Semliki, Lake Albert, Pakwach and Rhino Camp areas which exceed 6000m in places;
3.11: Geological history of the Graben characterised by the pre-rift and syn-rift phases;
3.12: Pre-rift phase begins the Precambrian that consists of gneisses and varying amounts of quartzites and granites;
3.13: Unmetamorphosed pre-rift clastics include tillites, variegated mudstones, sandstones and conglomerates. They are thought to range in age from Permian to Jurassic;
3.14: Syn-rift rocks comprise Miocene to Quarternary sediments. Their environment of deposition was fluvio-lacustrine;
3.15: Waki B-1 well indicates a basal section consisting of conglomerates, sandstones and shales postulated to be Jurassic by analogy to a similar section in the central D.R.C.
EA1
EA2
EA3

9. Progress of Exploration in Uganda
1983/84
Aero-magnetic:
-Identified 3 basins: EA1, EA2 & EA3.
1991-Todate
Geological mapping:
-Source rocks, Reservoir rocks and possible seals identified and surface structures mapped.
Ground Gravity and Magnetics:
-EA’s 1-4 covered, EA5 in progress
-Identified 5 basins with modeled sediment thickness Km.
Seismic:
-Identified complex geological structuring and confirmed the above sediment thickness in EA3.
-2D Seismic acquisition in EA2 expected before end of 2003.
Exploratory Drilling:
- 2002
- Additional drilling expected during 2003
1983/84
1991-Todate
EA1
EA2
EA3

10. HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
BASIN GEOMETRY
A number of buried “valleys” and “hills” observed along E-E’.
Valleys represent possible kitchen areas.
“Hills” represent possible traps. E’ E

11. SEISMIC DATA Depocentres - Sediment thickness in excess of 5 km
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
SEISMIC DATA
Depocentres - Sediment thickness in excess of 5 km
Trap types - Rollover anticlines, Tilted Fault Blocks, and other types.

12. HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
RESERVOIR ROCKS
High quality sandstones in outcrop also in Waki B-1 and Turaco-1 wells
Porosity 20-30%
Alternating shales and sandstones in Waki B-1 well suggest potential for good sealing mechanism, and posibility of multiple pay zones.
Similar arrangment observed in outcrop of the Semliki basin.

13. The Albertine graben is rich in reservoir rocks.
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
The Albertine graben is rich in reservoir rocks.
Porosity in sandstone ~30%
Secondary porosity in fractured basement

14. HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
SOURCE ROCKS AND OIL SEEPAGES
1. Source Rocks
Mapped inthe Kaiso_Tonya area
Encountered in both Waki B-1 and Turaco-1 wells
2. Oil Seeps
There are five proven oils seeps in the Albertine graben
Paara, Kibiro, Kibuku, Sempaya
Others reported on the DRC side of the Graben
Oil shows encountered in wells.
An oil film on Victoria Nile

15. Traps Faulting major control of trap formation.
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
Traps
Typical rift traping mechanisms to be expected
Drape-anticline;
Rollover-anticline;
Fault-block;
Buried-hill;
Pinch-out;
Lithologic
Faulting major
control of trap
formation.
SHEMATIC DIAGRAM SHOWING DIFFERENT TYPES OF TRAPS

16. TRAP TYPES IN SEMLIKI BASIN, ALBERTINE GRABEN
Gravity SE NW
Depth profile
1:50,000
Gravity highs
Tilted Fault Blocks
Drape anticline
Rollover anticline

17. The Prospectivity of the Albertine Graben
DHI’s
Direct Hydrocarbon Indicators (DHI): Flat Reflections,
Bright spots.

18. AVAILABLE MAKERT Uganda’s Petroleum Products Consumption
US $ 160.0m annually
40% of export earnings
12% of GDP
5% increment per year
Regional market
Uganda, Kenya, Tanzania estimated to consume over US $ 1.0 bn annually.
None produces oil.
Rwanda and Burundi import all their petroleum products requirements
Eastern D.R.C. depends on imports through Uganda.
DISCOVERY IN THE ALBERTINE GRABEN WILL FIND A LARGE AND READY MARKET

19. ANALOGY
Rift Environments are well established world wide as good habitats for oil and gas accumulation e.g Viking Graben in the North Sea
Albertine Graben is Analogous to Yishu Graben in China, Central Sumatra Basin in Indonesia , Cambay Basin in India.

20. YI-SHU GRABEN IN CHINA
Lower Tertiary, Lacustrine source rock, Sst reservoirs and basement drape anticlines, faulted blocks, buried hills, 2200 km2, million bbls and 31.8 billion m3 gas.

21. CENTRAL SUMATRA BASIN Lower Tertiary
Lacustrine source rock, Type I&II kerogen
Delta front sandstones and fractured basement
Palaeo highs, drag folds
>90,000 km2
25 billion bbls
(Adopted from Lambiase, 1995)

22. COMPARISION OF YI-SHU, ALBERTINE AND CENTRAL SUMATRA
Parameters
Yi-Shu Graben
Albertine Graben
Central Sumatra Basin
Area (km2)
2200
> 10,000
>90,000
Length (km)
140
570
450
Width (km)
10-20 45
Thickness
>6000
>5000
~5000
Framework
Full Graben
Source rocks
Lower Tertiary, Lacustrine, Type I, II kerogen, TOC >1%
Lower Tertiary, Lacustrine, Type I II, III kerogen, TOC >1%
Lower Tertiary, Lacustrine, Type I, II kerogen, TOC 1-10%
Reservoirs
Mostly Sst, also Basement
Mostly Sst, good porosity also Basement
Delta front Sst, good porosity also Basement

23. COMPARISION OF YI-SHU, ALBERTINE AND CENTRAL SUMATRA
Parameters
Yi-Shu Graben
Albertine Graben
Central Sumatra Basin
Traps
Various incl. Drape anticline, faulted block, buried hills, stratigraphic
Palaeo highs, drag folds, inversion structures
Timing
favourable
unknown
Petroleum system
Proven
Speculative
Resource
m bbls
25 billion bbls

24. LICENCING REGIME Petroleum Exploration in Uganda is governed by:
The Petroleum (Exploration & Production ) Act, 1985;
The Model Production Sharing Agreement
Uganda Wildlife Statute, 1996
The National Environment Statute, 1995
Exploration Periods
Exploration License not exceeding 8 years subdivided as follows:
Exploration Period Maximum
First years
Second years
Third years
Production license 25 years with a possibility of renewal for 5 years
Work Programme
Seismic commitment
An early well commitment
Mandatory Relinquishment
50% after the First Period.
25% after the Second period

25. Sliding Royalty on production to allow for producing small fields
FISCAL TERMS
Sliding Royalty on production to allow for producing small fields
Sliding profit sharing
Attractive cost recovery
Income Tax currently fixed at 30%
Government will consider alternative proposals during negotiations.

26. Some Key Incentives to Investors
The graben has all the necessary elements of a valid petroleum system;
The Exploration Areas are sizeable;
The whole Region imports its petroleum products;
There is already established market for petroleum products;
Agreement on Co-operation with Democratic Republic of Congo already in place;
The Department of Petroleum Exploration and Production provides well organized data and guidance;
The investment law is in place which is being handled by Uganda Investment Authority;
No signature bonus;
No restriction on repatriation of profits;
Stable taxation regime to avoid encumbrances that would arise from tax fluctuations;
Membership of Uganda to Multilateral Investment Guarantee Agency that ensures security of investment

27. OPPORTUNITIES FOR LICENSING
EA5 Rhino Camp Basin
Area Size 6,040 sq. Km
Estimated sediment thickness 3 Km from aeromagnetic data.
EA2 Lake Albert Basin
Area size 4,675 sq Km
Modeled sediment thickness 5.5 km
Licensed to Hardman Resources Ltd. and Energy Africa Ltd.
EA1 Pakwach Basin
Area Size 4,285 sq Km
Estimated sediment thickness 5 Km
EA4 Lake Edward-George basin
Area Size 5,910 sq Km
Sediment thickness 5.5 Km
EA3 Semliki Basin
Area size 4,630 sq Km
Estimated sediment thickness 6 Km
Licensed to Heritage Oil & Gas Ltd. and Energy Africa Ltd

28. CONCLUSION
The Petroleum potential of the Albertine Graben has been demonstrated but remains under explored.
There is acreage in 3 Exploration Areas which is available for licensing
Uganda has a conducive investment policy, liberalized economy and very clear petroleum legislation
You are welcome to invest in the petroleum potential of Uganda, enjoy the scenery and friendliness of its people.

29. Other Investment Opportunities
Floriculture
Fish and Fish farming
Cotton and Textile
Building and Construction
Foods and Beverages
Education
Financial Services
Fruits and Vegetables
Dairy
Tourism
Petroleum Exploration
Mining
Commercial Agriculture
Agro-processing

30. Thank you
and
We also Welcome you to Booth no for further discussions.
Hope to see you in Uganda soon.
For further Information, Please Contact:
The Commissioner
Petroleum Exploration and Production Department
P. O. Box 9, Entebbe, UGANDA
Tel.: /
Fax.: