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Ophir Reports New Gas Discovery In Block 1 Off Tanzania

|Includes:BRGYY, Ophir Energy Company Limited (OPGYF)

Ophir Energy has reported that BG made a gas discovery in the Taachui-1 and subsequent Tasachui-1 ST well in Block 1, Tanzania.

The Taachui-1 well was drilled by the Deepsea Metro I drillship close to the western boundary of Block 1. The well was sidetracked for operational reasons to complete as the Taachui-1 ST1 well and was drilled to a total depth of 4,215m. The well encountered gas in a single gross column of 289m within the targeted Cretaceous reservoir interval. Net pay totaled 155m.

Ophir added that the observed reservoir properties are in-line with those encountered at Mzia, the other Cretaceous-aged discovery on Block 1. Estimates for the mean recoverable resource from the discovery are 1 Tcf. The size of the gas column is such that the discovery could extend into a second compartment to the west which has the potential to be of a similar size.

A Drill Stem Test will now be performed on the Taachui discovery with results expected before the end of Jun-2014.

Ownership of Block 1: BG (60%, operator), Ophir (20%) and Temasek Holdings (20%).

In Jan-2014, Ophir Energy announced that the Mlinzo Mbali-1 exploration well in Block 7 off Tanzania had encountered water in the targeted structure.

In Nov-2013, Ophir Energy commenced drilling at the Mlinzi Mbali-1 well in Block 7, Tanzania using the Deepsea Metro I drillship.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: OPGYF, BRGYY