Successful Drill Stem Test for Mzia-2 Well

BG Group reported Wednesday that it has completed another successful drill stem test in Block 1, offshore Tanzania, with initial results from the Mzia-2 well showing better-than-expected properties in the deeper Cretaceous reservoir.

BG said that the test on Mzia-2, the first carried out on a Cretaceous discovery in deep water off Tanzania, flowed at a maximum rate of 57 million cubic feet of gas per day.

Mzia-2 is some 2.5 miles from the Mzia-1 discovery, approximately 30 miles off the coast of southern Tanzania.

BG Group Chief Executive Chris Finlayson commented in a statement:

"The successful Mzia-2 drill stem test follows completion of a multi-well appraisal program 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.
"While we continue exploration and appraisal offshore, BG Group and others are jointly studying suitable sites for a potential onshore LNG terminal and anticipate providing proposed locations to the Tanzania Government in the next few months."

In a separate statement Ophir Energy, BG's partner in the license with a 40-percent interest, also welcomed the news. Ophir CEO Nick Cooper hailed the achievement as "another important step forward in Tanzania's first LNG development project", noting that the drill stem test result "has increased estimated recoverable resources from the field to an estimated 4.5 trillion cubic feet".

The Deepsea Metro I (UDW drillship), used to drill the Mzia-2 well, has now relocated to Block 4 to drill an exploration well, Ngisi-1, adjacent to the Pweza and Chewa discoveries.


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