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BG makes fifth consecutive Tanzania gas discovery

BG Group 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 m of natural gas pay in good quality sands. An extensive logging program 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 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 approximately 45 km offshore southern Tanzania in a water depth of 1639 m. It is some 23 km from the Jodari-1 discovery and is part of the 2012 three-to-four well exploration program.

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%.

05/18/2012

 

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