Initial Extended Well Test for Guará discovery

29 December 2010

Initial Extended Well Test for Guará discovery, offshore Brazil

BG Group today announced that the initial Extended Well Test (EWT) on the Guará discovery in the BM-S-9 concession offshore Brazil commenced on 25th December 2010.

The EWT is being conducted in the SPS-55 well using the Floating Production, Storage and Offloading (FPSO) vessel Dynamic Producer. The EWT will last for about five months with gross daily production estimated at approximately 14 000 barrels of oil per day (bopd).

Following completion of the EWT, a pilot project on the discovery will commence in 2013 with wells connected to the FPSO Cicade de Sao Paulo which has a production capacity of 120 000 bopd and around 177 million standard cubic feet of gas per day.

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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), 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

BG Group has a 30% interest in the Guará field in the BM-S-9 concession, offshore Brazil (Petrobras, operator 45%, Repsol 25%).

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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 2009. 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.