BG/Ophir Mark Fifth Tanzania Success

BG Group and Ophir Energy marked their fifth consecutive gas discovery off the coast of Tanzania with the drilling of the Mzia-1 well on Block 1. The well intersected a 178 meter gas bearing column and 55 meters of net pay in the Upper Cretaceous. Mean in place resource is estimated at 3.5 Tcf, with significant potential upside.

Further technical work will determine the recoverable resource of this substantial, commercial gas discovery.

Mzia-1 is the BG/Ophir JV’s first discovery within the deeper Cretaceous section and opens an extensive new play fairway within the offshore acreage in Blocks 1, 3 and 4, to complement the now proven Tertiary fairway.

The well has significantly de-risked a number of adjacent Cretaceous prospects, which could form part of a future Mzia hub. These prospects are expected to be tested in a future appraisal program to be defined following incorporation of data from this new well and 3D seismic.

The new resources proven by Mzia and the potential of adjacent prospects are currently under evaluation. Prior to drilling Mzia-1, BG Group had estimated mean total gross recoverable resources approaching 7 Tcf of gas from the four previous discoveries drilled in Tanzania.

Mzia-1 is part of the 2012 three-to-four well exploration program. Following completion of operations at Mzia, the Deepsea Metro-1 will relocate to Block 3 for the drilling of the next exploration prospect, Papa-1.

Nick Cooper, CEO of Ophir Energy said: “Mzia-1 was the first definitive test of the Upper Cretaceous in Tanzania, and Ophir's highest risk East African well to date. This play-opening result, and other recently announced drilling, have now proven the Upper Cretaceous slope play on the Tanzanian side of the Rovuma Delta and de-risked an inventory of adjacent prospects of similar age. The success at Mzia-1 is a major step towards a Tanzanian LNG hub development in Block 1. We will now test the equivalent deeper play in the Rufiji Delta in Block 3 with the Papa-1 well.”

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy plc holding 40%.