4th Oct 2006 15:10
BG GROUP plc04 October 2006 Media Information 4 October 2006 BG Group announces discovery in Santos Basin offshore Brazil BG Group today announced the discovery of an oil field in the Santos Basin,offshore Brazil. The discovery, known as Tupi, lies in Block BM-S-11, where BGGroup holds a 25 per cent interest in the discovery along with operatorPetrobras (65 per cent) and Petrogal (10 per cent). The Tupi well flowed 4900 barrels per day of sweet 30 API crude oil and 4.3mmscfper day of gas from a deep pre-salt reservoir on a 5/8th inch choke. Tupi is alarge structure with significant reserves potential requiring further appraisaldrilling and evaluation. The discovery has led to BG and Petrobras agreeing toan acceleration of their exploration and appraisal programme. BG Group Chief Executive Officer, Frank Chapman said: "This is a very important discovery which follows on from the discovery earlierthis year of oil with the Parati well some 70 km distant in Block BM-S-10. I amdelighted to report that BG has built a material exposure to this newhydrocarbon province. BG has equity interests ranging from 25-60% in 7 blocks inthe Santos basin containing numerous prospects. BG is strongly aligned withPetrobras in seeking to advance work on this new play." Block BM-S-11 lies 250 kilometers off the south coast of Rio de Janeiro. TheTupi well is located in water depth of 2126 metres. In addition to BlockBM-S-11, BG Group has interests in further six blocks in the Santos Basin -BM-S-9, 10, 13, 47, 50 and 52 - covering a total area of 8130 square kilometres. There are matters discussed in this media information that are forward lookingstatements. Such statements are only predictions and actual events or resultsmay differ materially. For a discussion of important factors which could causeactual results to differ from the forward looking statements, refer to theCompany's annual report and accounts for the year ended 31 December 2005. TheCompany does not undertake any obligation to update publicly, or revise, forwardlooking statements, whether as a result of new information, future events orotherwise, except to the extent legally required. Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in over25 countries, it operates four business segments - Exploration and Production,LNG, Transmission and Distribution and Power. BG has non-operated interests in three blocks in the deep water Santos Basin: BM-S-9, 10 and 11. In 2004 BG acquired a 100% operated interest in block BM-S-13 in the shallowwater Santos Basin. In 2005 BG was awarded three further concessions in the offshore Santos Basin(BM-S-47, 50 and 52) as well as one onshore concession (BT-SF-2) in the SaoFrancisco Basin in Minas Gerais State. BG has a controlling stake (60.1%) in Brazil's largest gas distribution company,Comgas. BG also has an equity position (7.65%) in the Bolivia-Brazil Pipeline (BBP). Cautionary Note to US investors The United States Securities and Exchange Commission (SEC) permits oil and gascompanies, in their filings with the SEC, to disclose only proved reserves thata company has demonstrated by actual production or conclusive formation tests tobe economically and legally producible under existing economic and operatingconditions. We use the term "significant reserves potential" in this media information which the SEC's guidelines strictly prohibit us from including infilings with the SEC. US investors are urged to consider closely the disclosurein our Form 20-F, File No. 1-09337, available from us at BG Group, 100 ThamesValley Park Drive, Reading RG6 1PT, Attention: Company Secretary. You may readand copy this information at the SEC's public reference room, located at 100 FStreet, N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. This filing isalso available at the internet website maintained by SEC at http://www.sec.gov. Enquiries: Communications +44 (0) 118 929 3717 Out of hours media mobile: +44 (0) 791 718 5707 Investor Relations +44 (0) 118 929 3025 Website: www.bg-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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