Appraisal well confirms extension of Santos Basin

10 April 2012

Appraisal well confirms extension of Santos Basin discovery

BG Group today announced the completion of drilling at an appraisal well in the BM-S-11 concession, off-shore Brazil, with good quality oil samples encountered. The results confirm the westerly extension of the Iara accumulation in the pre-salt Santos Basin and demonstrate the high potential of the pre-salt reservoirs within that area.

The BRSA-1032-RJS well, informally known as Iara West, is located 223 kilometres offshoreRio de Janeiro and approximately nine kilometres from the Iara discovery well in a water depth of2 150 metres. It encountered good quality oil (21˚ to 26˚ API, and within the anticipated range) in the pre-salt carbonate reservoirs at a depth of 5 430 metres.

Iara West, which reached a final depth of 6 050 metres, is the third well drilled in the Iara area and is part of the fast-track programme to develop the world-class pre-salt Santos Basin discoveries.

BG Group and its partners will continue to appraise the area, including formation tests to evaluate reservoir production, in line with the plan approved by Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP).

BG Group has a 25% interest in the BM-S-11 block (Petrobras, operator, 65%, Petrogal Brasil/Galp Energia 10%).

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Notes to Editors:

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There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer toBG Group's Annual Report and Accounts for the year ended 31 December 2011. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.