Tanzania resources raised to 15 tcf

10 December 2013

Latest campaign raises Tanzania resources to 15 tcf

BG Group today announced an increase in total recoverable resources for the Mzia discovery and across Blocks 1, 3 and 4 offshore southern Tanzania, marking the conclusion of a successful drilling and testing campaign.

The campaign confirmed Mzia as the second giant gas discovery, after Jodari, in BG Group's acreage offshore Tanzania, with 4.7 trillion cubic feet (tcf) of total gross recoverable resources. Total gross recoverable resources across BG Group's Blocks 1, 3 & 4 are now estimated to be around 15 tcf, with further exploration upside.

The Mzia-3 appraisal well, drilled approximately six kilometres north of the original Mzia-1 discovery in 1780 metres of water, has been cored and logged. Results confirm the reservoir sands are extensive and of similar quality to those found in the Mzia-1 and Mzia-2 wells. In addition, the gas-down-to level proven in Mzia-3 is around 100 metres deeper than that of Mzia-2.

Further north, detailed technical analysis of the Block 4 discoveries Chewa, Ngisi and Pweza, which were also appraised and tested in the campaign, was positive with total gross recoverable resources in the block now estimated around 5 tcf.

This means an extensive exploration and appraisal campaign of 14 wells started in 2010 offshore Tanzania has had a 100% success rate with nine consecutive discoveries and five appraisal wells, three of which included drill stem tests showing high flow rates.

BG Group Chief Executive Chris Finlayson said: "We have sufficient resources for a two-train LNG project in Tanzania. The aim of our appraisal programme now is to optimise the future development plan and place the most economic gas into the proposed project first to extract the most value across the chain."

"Onshore, BG Group and its partner Ophir Energy, together with the partners in Block 2, Statoil and ExxonMobil, are continuing to make good progress in the assessment of a multi-train LNG project. We look forward to the Tanzanian government's announcement of a decision on the location of an onshore site for an export facility."

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 40%.

BG Group has transferred the Deepsea Metro-1 drill ship to Ophir Energy for a one-well campaign. The vessel will then return to BG Group for one exploration well in Kenya next year before going back to Tanzania for further exploration and appraisal activities in Block 1, including a drill-stem test on Mzia-3 later in 2014.

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Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer to BG Group's Annual Report and Accounts for the year ended 31 December 2012. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

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