Tanzania: Ophir Boosts Mzia Resource Estimate

Ophir Energy provided an operational update for its East African operations.

Highlights:

Tanzania, Blocks 1, 3 and 4:

• Additional seismic and petrophysical analysis has increased management estimates of in-place resource for the Upper Cretaceous Mzia discovery in Block 1 from the previously announced 2-6 TCF to 4-9 TCF. Mean in-place estimate is 6 TCF. Petrophysical studies continue to determine the recoverable resource potential
• Similar analyses continue on core and log data from the Upper Cretaceous Papa discovery in Block 3
• Preliminary data from the recently acquired Kusini 3D seismic survey in the eastern, outboard area of Block 1 is of sufficiently high quality to allow aninitial interpretation of the potential prospectivity
• Tertiary-age sands have been interpreted in a basin floor setting in Block 1, that are apparently analogous to those seen on the adjacent Rovuma Delta, Mozambique. Sand fairways and basin floor depositional sequences have been identified within the Miocene to Paleocene stratigraphy that include substantial features with potential trapping geometries
• Drilling is expected to re-commence in Block 1 in late September and will initially focus on step-out exploration and appraisal around the 3.4 TCF recoverable Jodari discovery to confirm the first LNG hub for development in Tanzania
• Ophir Management estimates that gross discovered in-place resources for Blocks 1, 3 and 4 are currently 13.5- 21 TCF (2.3-3.5 bboe); meeting the threshold for a two-train LNG development

Ophir Operated acreage in Tanzanian & Kenya:

• A three block, 3D seismic programme totalling ~3,770 km2 is underway across Kenyan blocks L9, L15 and Tanzanian Block 7
• Interpretation continues on the recently acquired Ndizi 3D survey (~2,200 km2) in the Tanzania East Pande block
• Interpretation of existing datasets has thus far identified multiple plays and a significant un-risked prospect inventory of 36 TCF (7 bboe) of gas and possibly liquids targets across these four operated blocks

Ophir is conducting a farmout process to introduce a strategic partner ahead of a planned multi-well drilling programme in 2013.

Nick Cooper, CEO of Ophir, said:

“Ophir’s preliminary assessment of the new 3D in the eastern portion of Block 1 has identified basin floor stratigraphy and trapping geometries that could support the trapping of hydrocarbons. The preliminary dataset is of high quality and we are excited by the apparent prospectivity in the Tertiary basin floor fan play. It is early days in the interpretation but there appear to be similarities to the equivalent section of the Rovuma Delta in Mozambique.

Separately, on-going analysis of the Mzia-1 discovery in the Upper Cretaceous slope play of Block 1 indicates a larger in-place resource estimate than our immediate post-drill assessment. Ophir’s estimate of in place resources for Mzia has risen from 2-6 TCF to 4-9 TCF with a mean of 6 TCF. The Jodari and Mzia discoveries in Block 1 are both now likely anchor assets for Tanzania’s first LNG development.

Ophir continues to invest in the remainder of its East African portfolio where seven seismic datasets are being acquired this year to de-risk the exploration potential of Blocks L9, L15, 7 and East Pande. New play types and an associated inventory of drilling targets have been identified“.

[mappress]

LNG World News Staff, September 3, 2012