British gas producer BG Group and its partner Ophir Energy discovered more gas than estimated off the coast of Tanzania, coming closer to the minimum threshold volumes required for a two-train liquid natural gas development.
The discovery made at the Jodari-1 well in block 1 had recoverable mean resource estimated at 3.4 trillion cubic feet (TCF)), above the mean estimate of 2.2 TCF, Africa-focused oil and gas firm Ophir Energy said in a statement.
Ophir, backed by steel magnate Lakshmi Mittal, said the cumulative discovered, recoverable gas resources in blocks 1, 3, 4 were now about 7 TCF. Ophir holds 40 per cent of the three blocks.
3.4 TCF recoverable at Jodari is the strongest possible start to the five-well 2012 Tanzania drilling campaign, Investec’s Stuart Joyner said.
This is a very strong start to our five-well 2012 Tanzania drilling campaign and the Metro-1 drillship will now move to drill Mzia-1, which is targeting mean recoverable resources of 4.6 TCF, Ophir said.
BG’s shares were up about 1 per cent at 1505 pence at 0930 GMT on Monday on the London Stock Exchange, while those of Ophir rose 15 per cent to 461.7 pence.
The discovery made at the Jodari-1 well in block 1 had recoverable mean resource estimated at 3.4 trillion cubic feet (TCF)).