Key told the market today the first well, Kiliwani-1, will be drilled into the same reservoir that is producing gas in the Songo Songo gas field, 4km away.

The second well, Kiliwani North-1, will test this same reservoir system, as well as a shallower oil play with the potential to contain 10 million barrels of recoverable oil.

Key said the drilling rig was being disassembled on nearby Songo Songo island for relocation to the first drilling start on Kiliwani island.

Drilling is expected to start in 12 days.

Key managing director Ken Russell said the company had been “eagerly awaiting” the start of the Tanzanian drilling program.

“We can now get down to the business of exploring for oil and gas,” he said.

“The close proximity of these wells to the Songo Songo gas field provides us with the means to commercialise any success relatively quickly and will also provide valuable well data to be used for the evaluation of other prospects in the Nyuni block.”

Key Petroleum, which listed on the Australian bourse in April, will have a 20% interest in the PSC by paying 30% of the cost to drill the two wells.

Fellow Australian junior Bounty will have a 6% stake, while operator Aminex has 39%, RAK Gas has 25% and East Africa Exploration has 10%.