BG Group begins new well test in Santos Basin

5 March 2012

BG Group begins new well test in Santos Basin, offshore Brazil

BG Group today announced the start of a new well test in the Iracema area of the BM-S-11 concession in the pre-salt Santos Basin. The floating production, storage and offloading vessel (FPSO) Cidade de São Vicente was connected to the RJS-647 well, in water depths of 2 212 metres.

The FPSO will operate in the area for approximately six months, gathering technical information on reservoir behaviour and oil flow in the subsea lines, amongst other data. During this initial test phase the well is expected to produce at around 10 000 barrels of oil per day (bopd), constrained by facilities - as authorised by Brazil's National Agency for Petroleum, Natural Gas and Biofuels.

The well test is part of BG Group's fast-track development for its interests in the world class pre-salt Santos Basin discoveries and prospects. The information gathered will support the development of the final production system in the area, expected to be in operation by the end of 2014 with the installation of the 150 000 bopd capacity FPSO Cidade de Mangaratiba.

BG Group has a 25% interest in block BM-S-11, with operator Petrobras holding 65% and Petrogal Brasil S.A. 10%.

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Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG) and transmission and distribution business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

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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 2010. 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.