UK-based multinational oil and gas company BG Group has said that it has completed a drill stem test in Block 1, offshore of Tanzania.

The company said initial results from the Mzia-2 well have shown better than expected properties in the deeper Cretaceous reservoir.

During the test on Mzia-2, which is the first to be carried out on a Cretaceous discovery in deepwater off Tanzania, natural gas flowed at a maximum rate of 57 million standard cubic feet per day, controlled by testing equipment.

Mzia-2 is located four kilometres from the Mzia-1 discovery, in about 1,620m of water and nearly 45km off the coast of southern Tanzania.

The block is situated about 22km north of the Jodari-1 discovery well, also in Block 1, where the company completed a drill stem test on the shallower Tertiary reservoir recently in March.

BG Group has now relocated drillship Deepsea Metro-1 to Block 4 to drill an exploration well, Ngisi-1, which is located next to the Pweza and Chewa discoveries.

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By GlobalData

The company will utilise data from the current exploration and appraisal campaign and a completed 3-D seismic survey to locate new offshore targets for a third exploration programme, which is expected to commence in late 2013.

BG Group chief executive Chris Finlayson said the Mzia-2 drill stem test has been undertaken after completion of a multiwell appraisal programme in the beginning of 2013 on the nearby Jodari field.

"The company said initial results from the Mzia-2 well have shown better than expected properties."

"Results from the current campaign demonstrate the excellent quality of our interests offshore Tanzania, where our resources, and those of other participants in the region, are helping support plans for a multitrain LNG export project," Finlayson added.

BG Group, as the operator, holds 60% interest in Blocks 1, 3 and 4, offshore Tanzania, while Ophir Energy holds the remaining 40%.

In December 2010, BG Group discovered gas at Chewa-1, its second Tanzanian exploration well in Block 4, about 80km offshore of southern Tanzania.

Image: BG Group Place, the North American HQ of BG Group in Houston, US. Photo courtesy of Hourick.