2nd Oct 2014 09:15
LONDON (Alliance News) - Ophir Energy PLC Thursday said BG Group PLC, the operator of its drilling programme in Tanzania, has withdrawn from the Block 3 gas license.
As a result, Ophir will increase its interest from 20% to 80% and become the operator of the license, while Pavilion Energy will retain its original 20%. The application is subject to government approval.
Before withdrawing, BG Group had a 60% interest and was the operator of the site.
The 2012 Papa-1 gas discovery is the only well to have been drilled in Block 3 to date.
BG Group still holds its original equity holdings in Block 1 and Block 4.
A BG spokesman was unavailable for comment on Thursday morning.
Ophir Energy also said Thursday said it has discovered gas at its Kamba-1 well in Tanzania. The company said it has discovered 1.03 trillion cubic feet of gas in the Kamba and Fulusi prospects from the Kamba-1 well.
BG shares were down 2.5% to 1,065.92 pence per share Thursday morning, while Ophir Energy shares were up 2.5% at 226.40p.
By Joshua Warner; [email protected]; @JoshAlliance
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