Ophir reports strong test results from Mzia Field

Oil and gas group Ophir Energy delivered good news to investors on Wednesday in an update on its drill stem test in the Mzia Field in Tanzania.

The drill stem test on the Mzia-2 well flowed at the upper limit of the expected range, with the 60-hour main flow period reaching the maximum equipment-limited rate of 57m square cubic feet per day.

The successful appriasal programmes has validated the resource potential of the field and "confirmed that excellent development well productivity may be expected", the company said.

The group now estimates that mean recoverable resources from the Mzia Field have increased 22% from 3.5trn cubic feet to an estimated 4.5trn cubic feet.

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.

Chief Executive Officer Nick Cooper said: "The recent Jodari flow test demonstrated the excellent reservoir deliverability potential of the younger Tertiary reservoirs in Tanzania. This Mzia flow test is a landmark result as the first time that the older, Cretaceous reservoir has been flow tested in Tanzania.

"The Mzia-2 drill stem test result has increased estimated recoverable resources from the field to an estimated 4.5trn cubic feet. This flow test result will boost expected production rates and improve development economics for this asset. With this better than expected reservoir performance in the Cretaceous, the Ophir-BG JV will reassess the potential of both the earlier Papa-1 discovery and the remaining prospects of similar Cretaceous age.

"This is another important step forward in Tanzania's first LNG development project and illustrates the potential for further considerable upside in our acreage in Tanzania."

Ophir holds 40% of the blocks 1, 3 and 4 in Tanzania, with the remainder owned and operated by BG Group.

Ophir's share price rose 1.99% to 415p by 09:16 Wednesday.

NR