Statoil's Zafarani Field Test Successful

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Statoil reports that its Zafarani gas reservoir on Block 2, offshore Tanzania, has been successfully tested.

Statoil said a drill stem test from its Zafarani-2 well on two separate intervals flowed at a maximum rate of 66 million cubic feet of gas per day, confirming good reservoir quality and connectivity. The well is situated in 7,875 feet of water and lies approximately 50 miles off the coast of southern Tanzania.

Statoil Tanzania Country Manager Øystein Michelsen commented in a company statement:

"The ongoing appraisal programme is crucial to firm up the design and development basis for bringing gas to shore and a first phase onshore LNG project in Tanzania.

"We are now working constructively with our co-venturer ExxonMobil, Blocks 1, 3 & 4 and the Tanzanian authorities to progress the plans for a joint LNG plant development."

The production well rate potentials are estimated to be higher than the equipment constrained rates obtained during the test, Statoil said. The Zafarani-2 operation will be followed by the appraisal well Zafarani-3, which concludes the planned appraisal in the Zafarani reservoir, the cornerstone for a field development in Tanzania Block 2.

Statoil operates the license on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65-percent working interest, with ExxonMobil Exploration and Production Tanzania Limited holding the remaining 35 percent.

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