Continental Focus, International Reach

Ophir Lines Up New Drilling in Tanzania

Thursday, April 11, 2013

Ophir Energy provided and update on its activities in Tanzania and Ghana. In Tanzania on Block 1’s Jodari Field, following the successful completion of the multi-well Jodari appraisal program and Drill Stem Test (DST), Ophir management has increased the original 3.4 Tcf mean recoverable resource estimate of the Jodari Field by 700 BCF to 4.1 Tcf. Company management now estimate the total 2C mean recoverable resource estimate for Tanzania Blocks 1-3-4 at 12.6 Tcf.

On the Mzia Field, also located on Block 1, the Deep Sea Metro 1 drillship is now preparing a DST for the Cretaceous Mzia discovery. Results from this DST are expected in late-April. Ophir estimates that a flow test rate of 10-20 Mmscf/d would be commercial for development of this asset.

The company will begin drilling on Block 4 following the completion of the Jodari and Mzia testing programs. The drillship will move to the Mgisi prospect, which Ophir estimates to contain mean in-place resources of around 1.3 Tcf with a 70% chance-of-success. Ngisi-1 will be drilled with two deviated well paths; both of which will test separate compartments of the Ngisi Prospect and the deeper Chewa Discovery.

The company said if the Ngisi well is successful it will increase the mean in-place resource of the Chewa-Pweza-Ngisi hub to 5.8 Tcf, or 4.1 Tcf mean recoverable resource, and will provide critical scale for gas development from Block 4. This ‘proof of concept well’ will further demonstrate the feasibility of drilling highly deviated wells. Ophir and BG Group successfully drilled their first deviated well in December 2012 in the Jodari Field. Deviated wells are expected to reduce field development costs.

Following the drilling of this well, the Deep Sea Metro 1 will be released. Unscheduled but mandated maintenance of the drillship has slowed the pace of the rig’s operations and Ngisi will be the final well drilled by the drillship before the contract expires in early-June.

Ophir and BG are continuing to interpret the Block 1 outboard Kusini 3D survey. Recent receipt of the final offset stack data is providing additional information that may expand the prospectivity and change the ranked order of preference for drilling. The Joint Venture plans to secure a rig to continue its exploration program with a view to commencing in Q3 2013.

In Ghana Ophir contracted the Stena DrillMAX to drill the Starfish Prospect. Starfish-1 will be located in water depths of 1,360 meters with a target depth of 3,750 meters and is expected to spud in early-June. The well is designed as a play-opener to test a stratigraphic onlap trap to the east of the major Ghanaian discoveries made by Kosmos Energy and Tullow Oil. Ophir management estimates mean prospective resources of 292 MMBOE with a 20% chance of success.

Nick Cooper, CEO of Ophir Energy said: “We are pleased that appraisal and DST data from Jodari-1 has increased confidence in the world-class reservoir and led to a 22% increase in this anchor asset for Tanzania’s first LNG project. After the completion of the Mzia-2 DST, we will then move to delineate the resources in Block 4 by drilling the Ngisi-1 well. This is designed to establish sufficient resources to underpin a single LNG train in the northern area of Blocks 1-3-4. Meanwhile, Ophir and our partner BG Group will continue to interpret the outboard prospectivity of Block 1. We remain excited by this area. With final data only recently received, however, the JV needs more time to refine the outboard drilling sequence and plans to re-commence exploration in Block 1 in Q3 2013.

“In addition, Ophir has secured a rig for our operated drilling program offshore Ghana. The Stena DrillMAX, Dual Derrick Drillship has recently completed a number of efficient and successful wells in Ghana. Drilling Starfish-1 will mark our first well offshore Ghana and Ophir’s tenth operated deepwater well in West Africa.”


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