2nd Oct 2014 09:33
LONDON (Alliance News) - Ophir Energy PLC Thursday said it has discovered gas at its Kamba-1 well in the block 4 license in Tanzania and that BG Group, the operator, has withdrawn from the block 3 license, resulting in Ophir taking over as the operator of the block.
The company said it has discovered 1.03 trillion cubic feet of gas in the Kamba and Fulusi prospects from its Kamba-1 well. The gas discovery is comprised of 650 billion cubic feet of gas in Kamba prospect and 360 billion cubic feet in Fulusi prospect.
The Kamba-1 well is in its block 4 license, which is operated by BG Group, with Ophir holding a 20% interest in the license.
In the same statement, Ophir announced that BG Group has withdrawn from the block 3 license. As a result, Ophir will increase its interest from 20% to 60% and become the operator of the site.
"Our view of the resource does not support BG Group proceding to the next phase of development," said a BG spokesman.
Before withdrawing, BG Group held a 60% interest in block 3. Its equity in block 1 and block 4 remain unaffected with all the proposed changes being subject to government approval.
The Kamba-1 well was drilled by the Deepsea Metro I drillship in a water depth of 1,379 metres, to a total depth of 3,969 metres.
It is the final well to be drilled in its current joint-venture drilling campaign, it said.
Ophir will also commence drilling at its Tende-1 well on the East Pande license, in which it has a 70% interest. The company plans to drill to a total depth of 4,200 metres, targeting a mean prospective resource estimate of 2.34 trillion cubic feet of gas, with a 15% chance of success, the company said in a statement. Drilling is expected to take approximately 35 days.
Ophir has added an additional well to its 2014 drilling programme in Tanzania. After the Tende-1 well is complete, it will drill its Mkuki-1 well in its block 7 license, in which Ophir have an 80% interest.
Mkuki-1 will be drilled to a total depth of 3,200 metres, targeting a mean prospective resource estimate of 2.19 trillion cubic feet of gas with a 13% chance of success, it said. Drilling is expected to take approximateley 20 days.
"Ophir is the most active explorer in Tanzania in 2014 and the drilling programme continues with the first of two operated exploration wells in the East Pande," said Chief Executive Nick Cooper.
BG shares were down 2.3% to 1,067.50 pence per share Thursday morning, while Ophir Energy shares were up 2.2% at 225.80p.
By Joshua Warner; [email protected]; @JoshAlliance
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