Statoil, along with its partner ExxonMobil, confirmed that the Zafarai-1 well in Block 2 offshore Tanzania has encountered indications of natural gas in a good-quality reservoir.

Statoil said that drilling operations are still ongoing and that it is too early to give any indication of size and commerciality.

The well was spud in early January 2012 and drilling operations are expected to take up to a total of three months to complete.

The well is being drilled by the drill ship Ocean Rig Poseidon (UDW drillship) and is located some 50 miles (80 kilometers) off mainland Tanzania.

It is the first exploration well that has been drilled in the license which covers an area of approximately 2,120 square miles (5,500 square kilometers). The water depth at the well location is 8,470 feet (2,582 meters) and the well itself is planned to reach a total depth of 16,900 feet (5,150 meters).

Tags: Statoil