BG Group: Tanzania Exploration Well Encounters Hydrocarbons

BG Group (60%) today announced that the Pweza-1 exploration well, located in Block 4 approximately 85 kilometres offshore southern Tanzania and in a water depth of 1 400 metres, has demonstrated the presence of a working hydrocarbon system after encountering gas-bearing sands.

In May 2010, BG Group received consent from the government of the United Republic of Tanzania to farm-in to interests held by Ophir Energy plc (as operator) offshore southern Tanzania in Blocks 1, 3 and 4 of the Mafia Deep Offshore Basin and northern portion of the Ruvuma Basin.

Pweza-1 is the first of a three-well initial work programme planned for Blocks 1, 3 and 4. The programme also includes the acquisition of 4 000 square kilometres of 3D seismic data. BG Group has the option to assume operatorship of all three Blocks upon completion of the initial work programme.

BG Group plc is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.

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Source: BG Group, October  22, 2010;