BG Group completes successful well test offshore Tanzania

The Deepsea Metro-1. (Image source: Deep Sea Metro Ltd)The Deepsea Metro-1. (Image source: Deep Sea Metro Ltd)BG Group has announced the completion of another successful drill stem test in Block 1 offshore Tanzania, with initial results from the Mzia-2 well showing better than expected properties in the deeper Cretaceous reservoir

The test on Mzia-2, the first done on a Cretaceous discovery in deep water off Tanzania, flowed at a maximum rate of 57mn standard cubic feet of natural gas per day, constrained by testing equipment.

Mzia-2 is four kilometres from the Mzia-1 discovery, in around 1,620m of water and approximately 45km off the coast of southern Tanzania.

It is approximately 22km to the north of the Jodari-1 discovery well, also in Block 1, where a successful drill stem test was completed in March on the shallower Tertiary reservoir.

"Results from the current campaign demonstrate the excellent quality of our interests offshore Tanzania, where our resources, and those of other participants in the region, are helping support plans for a multi-train LNG export project," said BG Group chief executive, Chris Finlayson.

"While we continue exploration and appraisal offshore, BG Group and others are jointly studying suitable sites for a potential onshore LNG terminal and anticipate providing proposed locations to the Tanzania Government in the next few months."

The drillship Deepsea Metro-1 has now relocated to Block 4 to drill an exploration well, Ngisi-1, adjacent to the Pweza and Chewa discoveries.

BG Group will use data from the current exploration and appraisal campaign and a recently completed 3-D seismic survey to help identify new offshore targets for a third exploration programme beginning in late 2013.

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

"This Mzia flow test is a landmark result as the first time that the older, Cretaceous reservoir has been flow tested in Tanzania," said Ophir CEO, Nick Cooper.

"The Mzia-2 DST result has increased estimated recoverable resources from the field to an estimated 4.5 trillion cubic feet. This flow test result will boost expected production rates and improve development economics for this asset."

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

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