BG Group hits gas with second well off Tanzania

BG Group has discovered gas with its second Tanzanian exploration well, Chewa-1, the company announced

Offshore staff

LONDON -- BG Group has discovered gas with its second Tanzanian exploration well, Chewa-1, the company announced today. The well, located in Block 4 approximately 80 km offshore southern Tanzania in a water depth of around 1 300 m, is some 8 km northwest of BG Group's Pweza-1 gas discovery announced in October.

Chewa-1, operated by Ophir Energy plc (40%), is the second of a three-well initial work program planned for Blocks 1, 3, and 4 offshore southern Tanzania. The initial work program also includes the acquisition of 4,000 sq km of 3D seismic data. BG Group (60%) has the option to assume operatorship of all three blocks upon completion of the initial work program.

"This is an encouraging start to our campaign in Tanzania," said BG Group Chief Executive Frank Chapman. "We have a large acreage position to explore and an extensive exploration program will be needed to assess the full potential of this new play."

12/01/10

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