Ophir Energy confirms success of Mzia appraisal well

Ophir Energy, the FTSE 250 oil and gas group, said Thursday that the Mzia-2 appraisal well in Tanzania had been a success, with the Mzia-1 and Mzia-2 columns confirmed to be in direct pressure communication.

Ophir Energy, the FTSE 250 oil and gas group, said Thursday that the Mzia-2 appraisal well in Tanzania had been a success, with the Mzia-1 and Mzia-2 columns confirmed to be in direct pressure communication.

The results confirmed a vertical gas column of at least 200m for the Mzia field, in which it holds 40%, with the remainder held by BG Group.

Mzia-2 has now been suspended for potential testing.

The company also announced that its block 1 flow testing programme is due to begin "imminently" on the Jodari field, with a subsequent drill stem testing of Mzia being planned.

However, the firm warned that due to the high-quality reservoir properties verified in the Jodari field, the joint venture anticipates that the observed flow rate may be constrained by the limits of testing equipment.

The company also said that test rates from the Cretaceous-aged Mzia reservoir are forecast to be lower than from the Tertiary due to differences in burial depth and the relative parameters of the two reservoir types.

Following completion of testing the joint venture will re-commence exploration drilling with an anticipated two well programme starting in early April," Ophir said.

"The joint venture is actively interpreting and mapping an inventory of prospects following which Ophir will update the market with both target sizes and proposed well locations."

The company added that the JV is undertaking a 2,500 sq km 3D seismic survey in the inboard area of Block 1 to investigate additional resource potential and mature further drilling targets and said the acquisition of the inboard 3D survey is expected to be completed in late March.

Despite the generally positive update, the stock continued to suffer a decline in its share price as the stock rebalanced after two stakeholders - Och-Ziff and Mittal Investments - on Tuesday evening announced that they planned to trade in half their holdings through Credit Suisse.

The share price had fallen 8.95%, equal to 46.50p, to 473p by 08:50.

NR

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022