BG finds more gas offshore Tanzania to feed LNG project

LONDON, Aug 27 (Reuters) - British gas producer BG Group (LSE: BG.L - news) said encouraging results from its latest test drill offshore Tanzania increased chances to develop an onshore liquefied natural gas (LNG) project in the country.

The Mzia-3 appraisal well flowed gas at a maximum rate of 101 million cubic feet per day, nearly double the flow rate measured at Mzia-2 last year.

"The excellent results from this latest drill-stem test further reduce reservoir risk, a critical factor as we progress design of the upstream production facilities and infrastructure," said Sami Iskander, BG Group's chief operating officer.

BG Group has a 60 percent interest in the three blocks offshore Tanzania, while Ophir Energy (Other OTC: OPGYF - news) and Pavillon (SES: E1:596.SI - news) Energy hold 20 percent each.

Ophir said separately on Wednesday results from its Tonel North-1 appraisal well in Equatorial Guinea were disappointing and reduced marginally the discovered volume of the field.

The development of its floating LNG project was not impacted, Ophir said.

(Reporting by Karolin Schaps; editing by Sarah Young)