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5th Discovery in a Row for BG Group Offshore Tanzania

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BG Group today announced its fifth consecutive Tanzania gas discovery with the Mzia-1 exploration well located in Block 1, offshore southern Tanzania.

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

Preliminary evaluation of the results indicates 55 metres of natural gas pay in good quality sands. An extensive logging programme has been completed, including the acquisition of pressure data and gas samples.

Significantly, the well has 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 programme 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 trillion cubic feet of gas from the four previous discoveries drilled in Tanzania.

Mzia-1 is approximately 45 kilometres offshore southern Tanzania in a water depth of 1 639 metres. It is some 23 kilometres from the Jodari-1 discovery and is part of the 2012 three-to-four well exploration programme.

Following the imminent completion of operations at Mzia, the Deepsea Metro-1 will relocate to Block 3 for the drilling of the next exploration prospect, Papa-1.

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

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BG Group makes fourth gas discovery in Tanzania

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by  BG Group
Press Release
Monday, March 26, 2012

BG Group announced Monday a fourth Tanzanian gas discovery from the Jodari-1 exploration well located in Block 1 offshore southern Tanzania. Preliminary evaluation of the well results indicates gross recoverable resources are in the range of 2.5 to 4.4 trillion cubic feet (tcf) of gas.

The partnership of BG Group (60 percent and operator) and Ophir Energy (40 percent) have had exploration successes in all four wells so far drilled in Tanzania, with mean total gross recoverable resources currently estimated to be approaching some 7 tcf of gas.

Jodari-1 is located approximately 24 miles (39 kilometers) offshore southern Tanzania and in a water depth of 3,770 feet (1,150 meters). It is part of the current three-to-four well exploration program, which also includes the acquisition of 965 square miles (2,500 square kilometers) of 3D seismic data in Block 1.

The next target for drilling is the Mzia-1 location in Block 1, some 14 miles (23 kilometers) to the north of Jodari-1. The discoveries announced previously are Chaza-1 in Block 1, and the Chewa-1 and Pweza-1 discoveries in Block 4.

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