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Statoil's Zafarani Reservoir Offshore Tanzania Successfully Tested

By Dominic Chopping Norwegian oil and gas major Statoil ASA (STO) said Monday that with co-venturer ExxonMobil () they have successfully tested the Tanzania Block 2 offshore discoveries. MAIN FACTS: -The Zafarani-2 operation tested two separate intervals and flowed at a maximum of 66 million standard cubic feet of gas per day, constrained by equipment, and confirmed good reservoir quality and connectivity. -"The ongoing appraisal programme is crucial to firm up the design and development basis for bringing gas to shore and a first phase onshore LNG project in Tanzania," says Oystein Michelsen, Statoil's Tanzania country manager. -"We are now working constructively with our co-venturer ExxonMobil, Blocks 1, 3 & 4 and the Tanzanian authorities to progress the plans for a joint LNG plant development." -The production well rate potentials are estimated to be higher than the equipment constrained rates obtained during the test. -The Zafarani-2 operation will be followed by the appraisal well Zafarani-3. -Statoil operates the licence on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65% working interest, with ExxonMobil Exploration and Production Tanzania Limited holding the remaining 35%. -At 0844 GMT shares traded 2.8% higher at NOK162.80. -Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics Subscribe to WSJ: http://online.wsj.com?mod=djnwires

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