BG, Ophir make fifth straight gas find in Tanzania

Natural gas companies BG Group and Ophir Energy have hailed their fifth consecutive gas discovery in Tanzania with the Mzia-1 well in Block 1 showing 'significant potential upside'.

"Preliminary evaluation of the results indicates 55 metres of natural gas pay in good quality sands," BG said in an announcement this morning, adding that the well has de-risked a numbed of similar prospects which could form part of a future Mzia hub.

BG is the operator in the Blocks 1, 3 and 4 and holds a 60% interest, while its FTSE 250 peer Ophir has a 40% stake.

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Prior to drilling the Mzia-1 well, which is located 45km offshore southern Tanzaniz, BG had estimated mean total gross recoverable resources approaching seven trillion cubic feet of gas from the four previous discoveries in the country. "The Mzia-1 result will add substantially to this total," Ophir said in a statement.

"Mzia-1 was the first definitive test of the Upper Cretaceous in Tanzania, and Ophir's highest risk East African well to date. This play-opening result, and other recently announced drilling, have now proven the Upper Cretaceous slope play on the Tanzanian side of the Rovuma Delta and de-risked an inventory of adjacent prospects of similar age," said Ophir's Chief Executive Officer Nick Cooper.

"The success at Mzia-1 is a major step towards a Tanzanian LNG hub development in Block 1. We will now test the equivalent deeper play in the Rufiji Delta in Block 3 with the Papa-1 well," he said.

BC