Norwegian oil company Statoil ASA (STO) and partner ExxonMobil Corp. (XOM) Friday confirmed that the Zafarani-1 well in Block 2 offshore Tanzania has encountered indications of natural gas in a good quality reservoir.

	
	 MAIN FACTS: 
-Drilling operations are still ongoing and it is too early to give any indication of size and commerciality.

-The well was spudded in early January 2012 and drilling operations are expected to take up to a total of 3 months to complete.

-The well is being drilled by the drill ship Ocean Rig Poseidon and is located some 80 kilometres off mainland
Tanzania .

-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 Ltd. holding the remaining 35%.

-The final assessment of what has been encountered will be released at a later stage once drilling operations have been completed and the well results fully analysed.

-At 1143 GMT shares traded 1% lower at NOK155.30.