BG Group completes successful Mzia well test

1 May 2013

BG Group completes successful Mzia well test, offshore Tanzania

BG Group today announced it had completed another successful drill stem test in Block 1 offshore Tanzania, with initial results from the Mzia-2 well showing better than expected properties in the deeper Cretaceous reservoir.

The test on Mzia-2, the first done on a Cretaceous discovery in deep water off Tanzania, flowed at a maximum rate of 57 million standard cubic feet of natural gas per day, constrained by testing equipment.

Mzia-2 is four kilometres from the Mzia-1 discovery, in around 1620 metres of water and approximately 45 kilometres off the coast of southern Tanzania. It is approximately 22 kilometres to the north of the Jodari-1 discovery well, also in Block 1, where a successful drill stem test was completed in March on the shallower Tertiary reservoir.

BG Group Chief Executive Chris Finlayson said: "The successful Mzia-2 drill stem test follows completion of a multi-well appraisal programme earlier this year on the nearby Jodari field. Results from the current campaign demonstrate the excellent quality of our interests offshore Tanzania, where our resources, and those of other participants in the region, are helping support plans for a multi-train LNG export project.

"While we continue exploration and appraisal offshore, BG Group and others are jointly studying suitable sites for a potential onshore LNG terminal and anticipate providing proposed locations to the Tanzania Government in the next few months," Mr Finlayson said.

The drillship Deepsea Metro-1 has now relocated to Block 4 to drill an exploration well, Ngisi-1, adjacent to the Pweza and Chewa discoveries.

BG Group will use data from the current exploration and appraisal campaign and a recently completed 3-D seismic survey to help identify new offshore targets for a third exploration programme beginning in late 2013.

Prior to Mzia-2, BG Group's acreage offshore Tanzania had produced seven consecutive natural gas discoveries, two successful appraisal wells and a successful test on the Jodari field.

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 40%.

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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 20 countries on five continents, BG Group has a broad portfolio of business interests focused on exploration and production and liquefied natural gas. 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

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 2012. 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.

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