BG expects more gas in Tanzania

27 March 2013, London – UK’s BG Group has hinted of the possibility of hitting more gas disciveries offshore Tanzania.

The company’s confidence in this regard is being propelled by its
evaluation on natural gas discovery in the area, which shows excellent results than expected.

BG disclosed that it has completed its appraisal programme in the
Jodari field of Block-1 offshore Tanzania, with a drill stem test on the original natural gas discovery well confirming the excellent quality of the Tertiary reservoir.

The drill stem test on the Jodari-1 well, the first in deep water off Tanzania, flowed at a maximum rate of 70 million standard cubic feet of natural gas per day, constrained by testing equipment.

“The results showed better than expected reservoir properties,
including high connectivity and demonstrated that development wells could produce at higher rates,” the BG Group’s Chief Executive Chris Finlayson said.

He said that the drill stem test was conducted on one of the three successful wells on the Jodari field, in 3,772 feet (1,150 meters) of water and approximately 24 miles (39 kilometers) off the coast of southern Tanzania.

“The completion of a multi-well exploration and appraisal programme on the Jodari field within a year of the original discovery is a significant achievement and a credit to our team and partners including Ophir Energy and the government of Tanzania,” Finlayson said.

Finlayson added that it builds upon our run of exploration success offshore Tanzania and further demonstrates the potential of BG Group’s acreage.

“Results from the Jodari-1 test have greatly improved our
understanding of the sub-surface, reducing uncertainty as we progress our options for commercializing the resource through a potential liquefied natural gas export project and our domestic market obligations,” he said.

BG Group President and Asset General Manager – East Africa, Derek
Hudson said that the successful drill stem test is a significant
milestone and illustrates the rapid progress they have made since
entering Tanzania in 2010.

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