BG Group Upgrades Ngisi Gas Discovery

Africa-focused Ophir Energy announced Wednesday that the Ngisi-1 appraisal well, operated by BG Group, has successfully found further gas pay in Block 4, offshore Tanzania.

The Ngisi-1 well was drilled by the Deepsea Metro 1 (UDW drillship) approximately three miles northeast of the Chewa-1 well. The Ngisi-1 well was designed to appraise the Chewa gas discovery drilled in 2010 and to penetrate the Ngisi exploration prospect.

Ophir reported that gas pay was encountered in the Ngisi prospect within a high net-to-gross reservoir interval, while penetration into the Chewa reservoir also encountered gas pay as predicted and confirmed widespread, excellent reservoir characteristics.

As a result, said Ophir, the mean recoverable resources of the Chewa-Pweza-Ngisi hub has been increased from 3.7 trillion cubic feet to 4.5 tcf.

Ophir added that the drilling result has also further demonstrated the feasibility of drilling highly-deviated wells, which will be incorporated into development planning of the assets. Ophir and BG Group successfully drilled their first deviated well in December 2012 in the Jodari Field.

Ophir CEO Nick Cooper commented in a company statement:

"The successful Ngisi drilling results provide critical mass for the aggregation and development of the gas discoveries in Block 4. These will be piped ashore and combined with the Block 1 resources for Tanzania's LNG development."

The Deepsea Metro 1 drillship will now drill the Mkizi-1 exploration well in Block 1. Mkizi is a 0.6 tcf prospect of Tertiary age.



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