Tanzania: Maurel & Prom drilling Ziwani-1 exploration well in Mnazi Bay Concession

JV partner Wentworth Resources has announced that the onshore Ziwani-1 exploration well (Wentworth 52.225%) spudded at 18:30 local time, February 1, 2012. This is the first new well to be drilled in the Mnazi Bay concession area since the MS-1X exploration well was drilled, logged and tested in 2007. The details of the well are as follows:

• The fifth well to be drilled in the Mnazi Bay concession;
• Approx. 13 km to the west of the producing Mnazi Bay and Msimbati gas fields;
• Expected vertical target depth range is 1,800 to 2,500 meters;
• Targeting Miocene and Oligocene sandstones, similar to the reservoirs of the Mnazi Bay and Msimbati gas fields;
• Well operator is Maurel et Prom and drilling time is estimated to be 35 days; and
• The well is the start of the 2012 Mnazi Bay work programme, which includes this exploration well, three existing work-overs wells and one appraisal well or additional exploration well.

Mnazi Bay Concession (Source: Wentworth Resources)

Wentworth will pay 30% of the costs of the Ziwani-1 well and holds a 52.225% participating interest in this exploration well, subject to the exercise of pre-emptive rights regarding the acquisition of Cove Energy's interest in Mnazi Bay as also announced on January 30, 2012. This well and the 2012 work programme are designed to explore for additional hydrocarbon resources and to further prove up existing natural gas reserves. Proving up additional gas resources will enable the concession partners to commit to and deliver agreed quantities of natural gas to the proposed Dar es Salaam to Mnazi Bay pipeline. The partners are in discussions with Tanzania Petroleum Development Corporation with a view to agreeing a long-term Gas Supply Agreement.

Managing Director, Geoff Bury, commented:

'We are excited to start the year with a high impact work programme that has the potential to deliver significant asset growth and shareholder value in 2012. The carried interest we enjoy in the Mnazi Bay concession provides full participation with reduced financial exposure. We look forward to updating further on the Ziwani-1 well as well as our entire work programme as we commence what is a seminal year in the Company's development.'

About the Mnazi Bay Concession

The Mnazi Bay Concession Area is located in coastal, south-eastern Tanzania in the Ruvuma (Rovuma) Basin. The area lies between Aminex and Tullow Oil's Ruvuma Concession Area and Ophir Energy and BG Group's offshore Block 1. Ophir and BG Group's Chaza-1 gas discovery lies just northeast of Mnazi Bay's marine border. The 756 km² concession area contains two discovered Tertiary aged gas fields (Mnazi Bay and Msimbati) and holds additional Tertiary, Cretaceous and Jurassic hydrocarbon potential. Four wells have been drilled to date: MB-1, MB-2, MB-3 and MS-1X, and all four wells encountered hydrocarbons. MB-1 is currently producing gas at a rate of 1.7-2.0mmscf/d and this gas is transported via an 8", 27 km pipeline to the Mtwara Power Plant where it generates electricity for numerous local communities.

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Source: Wentworth Resources