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Ophir Energy plc
Tanzania Block 1: Drill Stem Test Confirms Excellent Flow Rate, Reservoir Quality and Increased Recoverable Resources in the Mzia Field.
London, 1st May 2013: Ophir Energy plc ("Ophir" or "the Company") announces the successful Mzia-2 Drill Stem Test (DST), Block 1 Tanzania.
The Mzia-2 appraisal well was drilled earlier in February 2013, confirming an estimated 62m of net gas pay in Cretaceous reservoirs, establishing pressure communication between the Mzia-2 and Mzia-1 gas columns, and determining a vertical gas column of at least 200m for the Mzia Field.
The Mzia DST was designed to be the first test of Cretaceous age reservoirs in the Tanzanian deepwater play. Ophir management had previously estimated that a threshold flow test rate of 10-20 mmscf/d would be required to confirm the commerciality of future production wells from this asset. On test, the Mzia-2 DST flow-rate was at the very upper limit of the expected range. The 60 hour main flow period flowed at the maximum equipment limited rate of 57mmscf/d with a low drawdown (<600psi). Successful completion of the Mzia-2 appraisal programme has validated the resource potential of the field and confirmed that excellent development well productivity may be expected.
The DST results suggest that the reservoir parameters that had previously been used to calculate recoverable volumes in the Cretaceous reservoirs were conservative. Although further appraisal drilling will likely be required to determine the total recoverable resource of this extensive field, Ophir management now estimates that mean recoverable resources from the Mzia Field have increased 22% from 3.5 TCF to an estimated 4.5 TCF.
The Deep Sea Metro 1 drillship is now spudding the Ngisi-1 exploration well in Block 4. Ngisi-1 is designed with two deviated well paths; to test separate compartments of the Ngisi Prospect and the deeper Chewa Discovery. Ophir estimates Ngisi-1 could increase the mean in-place resource of the Chewa-Pweza-Ngisi hub to 5.8 TCF in place, (4.1 TCF mean recoverable) and will provide critical scale for gas aggregation and development from Block 4.
Ophir holds 40% of Blocks 1, 3 and 4 in Tanzania and operator BG Group holds 60%.
Nick Cooper, CEO, commented:
"The recent Jodari flow test demonstrated the excellent reservoir deliverability potential of the younger Tertiary reservoirs in Tanzania. This Mzia flow test is a landmark result as the first time that the older, Cretaceous reservoir has been flow tested in Tanzania. By flowing at an equipment-constrained 57 mmscf/d the Mzia Field has significantly exceeded our expectations.
The Mzia-2 DST result has increased estimated recoverable resources from the field to an estimated 4.5 TCF. This flow test result will boost expected production rates and improve development economics for this asset. With this better than expected reservoir performance in the Cretaceous, the Ophir-BG JV will reassess the potential of both the earlier Papa-1 discovery and the remaining prospects of similar Cretaceous age.
This is another important step forward in Tanzania's first LNG development project and illustrates the potential for further considerable upside in our acreage in Tanzania."
For Further Enquiries please contact:
Ophir Energy plc +44 (0)20 7290 5800
Nick Cooper, CEO
Stephanie Prior, Senior Commercial Manager
Brunswick Group +44 (0)20 7404 5959
Notes to Editors
Ophir Energy (OPHR.LN) is an African focussed, upstream oil and gas resource company which is a member of the FTSE 250. The Group's headquarters are located in London (England), with operational offices in Perth (Australia), Malabo (Equatorial Guinea), Dar es Salaam and Mtwara (Tanzania), Port Gentil, (Gabon) and Nairobi (Kenya).
Ophir is the 6th largest deepwater acreage holder in Africa, present in four key emerging sub-Saharan exploration themes, and the largest net acreage holder in offshore East Africa.
For further information on Ophir, please refer to www.ophir-energy.com
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