Excellent results from Jodari appraisal - Tanzania

18 March 2013

Excellent results from Jodari appraisal offshore Tanzania

BG Group today announced it had completed its appraisal programme in the Jodari field of Block 1 offshore Tanzania, with a drill stem test on the original natural gas discovery well confirming the excellent quality of the Tertiary reservoir.

The drill stem test on the Jodari-1 well, the first in deep water off Tanzania, flowed at a maximum rate of 70 million standard cubic feet of natural gas per day, constrained by testing equipment. The results showed better than expected reservoir properties, including high connectivity and demonstrated that development wells could produce at higher rates.

The drill stem test was conducted on one of the three successful wells on the Jodari field, in 1150 metres of water and approximately 39 kilometres off the coast of southern Tanzania.

BG Group Chief Executive Chris Finlayson said: "The completion of a multi-well exploration and appraisal programme on the Jodari field within a year of the original discovery is a significant achievement and a credit to our team and partners including Ophir Energy and the Government of Tanzania. It builds upon our run of exploration success offshore Tanzania and further demonstrates the potential of BG Group's acreage.

"Results from the Jodari-1 test have greatly improved our understanding of the sub-surface, reducing uncertainty as we progress our options for commercialising the resource through a potential liquefied natural gas export project and our domestic market obligations," Mr Finlayson said.

Following the completion of operations at Jodari-1, the drillship Deepsea Metro-1 will relocate 22 kilometres to the north to the Mzia-2 well, also in Block 1. Once there it will test an appraisal well drilled earlier this year.

Prior to the Jodari-1 drill stem test, BG Group's acreage offshore Tanzania had produced seven consecutive natural gas discoveries and two successful appraisal wells. BG Group is currently conducting a 3-D seismic survey to help identify new offshore targets for its Tanzania exploration programme.

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 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.

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