BG Group confirm well tests on Tupi North-East

24 March 2010

BG Group confirms high productivity from well tests on Tupi North-East in the Santos Basin, Brazil

BG Group (25%) and partners, Petrobras (65% and operator) and GALP (10%), have completed a drill stem test (DST) on the Tupi North-East well (3-BRSA-755A-RJS or 3-RJS-622A) in the

BM-S-11 appraisal area in the Santos Basin pre-salt, offshore Brazil.

The DST carried out confirmed high productivity of some 5 000 barrels oil per day (bopd) of light oil (28° API). Flow rates were constrained by the test facility capacity. Potential production from the well is estimated at around 30 000 bopd.

The Tupi North-East appraisal well has confirmed the widespread presence of an excellent quality, light oil bearing reservoir with high production capacity across the Tupi field. These appraisal results are in line with the previous excellent well test productivity recorded in the Tupi Sul well1 confirmed by a subsequent extended well test during the last 12 months2.

The Tupi North-East DST result builds upon the confirmation of record productivity from DSTs on the Iracema well in the same concession area 30 kilometres north-west of the Tupi North-East well, and previously announced in November 20093.

BG Group Chief Executive Frank Chapman said:

"The encouraging appraisal results from Tupi North-East provide more valuable information for the ongoing analysis of reserves in Brazil. We will continue to work with our partners to optimise the development options for our interests in this outstanding area."

Further evaluation of the well data is ongoing and work on optimising field development options continues at pace. BG Group and its partners will continue the activities and investments foreseen in the Evaluation Plan approved by the Brazilian National Petroleum Agency (ANP), including the drilling of further wells in the area.

Drilling on Tupi North-East, in the BM-S-11 appraisal area, was completed in November 20094. The well is situated 18 kilometres north-east of the original Tupi discovery well (1-RJS-628A or

1-BRSA-369A) in 2 115 metres of water, approximately 265 kilometres from the Rio de Janeiro coastline.

-ends-

Notes to Editors:

BG Group has interests in five concessions in the deep water Santos Basin: BM-S-9, 10, 11 and 50, which are operated by Petrobras; and BM-S-52, which is operated by BG Group.

BG Group also holds an operated interest in the BM-S-47 concession in the shallow water Santos Basin and holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.

1 http://www.bg-group.com/MediaCentre/PressArchive/2007/Pages/092107-sx.aspx

2 http://www.bg-group.com/MediaCentre/PressArchive/2009/Pages/1May2009.aspx

3http://www.bg-group.com/MediaCentre/Press/Pages/19Nov2009.aspx

4 http://www.bg-group.com/MediaCentre/PressArchive/2009/Pages/13Nov2009.aspx

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), transmission and distribution and power generation 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 to BG Group's Annual Report and Accounts for the year ended 31 December 2008. 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.