BG Group has reported its third Tanzanian gas discovery with the Chaza-1 well, located in Block 1 approximately 18 kilometres offshore southern Tanzania in a water depth of around 950 metres. The discovery is some 200 kilometres south of BG Group's Pweza and Chewa discoveries, previously announced.

The three successful wells so far drilled by the joint venture of BG Group (60%) and Ophir Energy plc (40% operator) form part of an initial work programme planned for Blocks 1, 3 and 4 offshore Tanzania. The initial work programme also includes the acquisition of a minimum of 4 000 square kilometres of 3D seismic data. BG Group has the option to assume operatorship of all three blocks upon completion of the initial work programme.

To date in 2011, a 3 200 square kilometre 3D seismic survey has been acquired in Blocks 3 and 4, and a second 3D survey of 1 800 square kilometres is nearing completion in Block 1. It is intended that a second drilling campaign will commence in late 2011.

In December 2010, BG Group declared that its second Tanzanian exploration well, Chewa-1, had also discovered gas. The well, located in Block 4 approximately 80 kilometres offshore southern Tanzania in a water depth of around 1 300 metres, is some eight kilometres north-west of BG Group's Pweza-1 gas discovery announced in October 2010.

In May 2010, BG Group received consent from the government of the United Republic of Tanzania to farm-in to interests held by Ophir Energy plc offshore southern Tanzania in Blocks 1, 3 & 4 of the Mafia Deep Offshore Basin and the northern portion of the Ruvuma basin.

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