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.

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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021