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Well test supports potential hub development offshore Tanzania, BG says

READING, United Kingdom -- The results from a recently completed second drill-stem test (DST) on the Mzia discovery in Block 1, offshore southern Tanzania, provided further support for a hub development to supply a potential onshore LNG project, BG Group says.

The DST on the Mzia-3 appraisal well, drilled in approximately 1,800 m of water around six km north of the original Mzia-1 discovery, included sustained gas production at a maximum flow rate of 101 MMscfd, equivalent to approximately 17,000 boed.

In May 2013, BG Group announced a test on the Mzia-2 well, the first done on a Cretaceous discovery in deep water offshore Tanzania, had flowed at an equipment-constrained rate of 57 MMscfd, or around 9,500 boed.

Sami Iskander, BG Group' s COO, said: "The excellent results from this latest drill-stem test further reduce reservoir risk, a critical factor as we progress design of the upstream production facilities and infrastructure. Also, the Mzia-3 DST, along with previous appraisal activities, supports our efforts to optimize the value of a development across our Block 1 discoveries."

Mzia, discovered in 2012, is a multi-layered field of Upper Cretaceous age with a gross gas column in excess of 300 m. The Mzia and Jodari discoveries in Block 1 are estimated to hold around 9 Tcf of total gross recoverable resources, with around 15 Tcf of total gross recoverable resources, around 2.5 Bboe, across Blocks 1, 3 and 4.

The drillship, the Deepsea Metro-1, will now move north to complete the exploration and appraisal program on the Block 4 discoveries by drilling the Kamba-1 well.

BG Group has a 60% interest in, and is operator of, Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 20% and Pavilion Energy 20%.



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