BG Group completes Mzia well test in Tanzania

BG Group said on Wednesday its Mzia-2 well offshore Tanzania has revealed better-than-expected resources following a drill stem test in Block 1.

The test on Mzia-2, the first completed on a Cretaceous discovery in deep water off Tanzania, flowed at a maximum rate of 57m standard cubic feet of natural gas per day, constrained by testing equipment.

Mzia-2 is located 4.0km from the Mzia-1 discovery, in about 1620 metres of water and approximately 45km off the coast of southern Tanzania. It is about 22km to the north of the Jodari-1 discovery well, also in Block 1, where a successful drill stem test was completed in March on the shallower Tertiary reservoir.

BG Group Chief Executive Chris Finlayson said: "The successful Mzia-2 drill stem test follows completion of a multi-well appraisal programme earlier this year on the nearby Jodari field. Results from the current campaign demonstrate the excellent quality of our interests offshore Tanzania, where our resources, and those of other participants in the region, are helping support plans for a multi-train LNG export project."

He said the company is also searching suitable sites for a potential onshore LNG terminal and expect to present proposed locations to the Tanzania Government in the next few months.

The drillship Deepsea Metro-1 has now relocated to Block 4 to drill an exploration well, Ngisi-1, adjacent to the Pweza and Chewa discoveries.

BG Group will use data from the current exploration and appraisal campaign and a recently completed 3D seismic survey to help identify new offshore targets for a third exploration programme beginning in late 2013.

RD