8th Aug 2008 07:00
|
News Release |
8 August 2008
BG Group announces material new discovery
in Santos Basin, offshore Brazil
BG Group today announced a material new oil discovery in the pre-salt Santos Basin, offshore Brazil. The exploration well, known as Iara, discovered 30 degrees API light crude oil within the BM-S-11 concession area.
Iara is a new discovery and is the third well to encounter hydrocarbons within the BM-S-11 concession area in which BG Group holds a 25 per cent interest together with operator Petrobras (65 per cent) and Galp Energia (10 per cent). BG Group announced that it had encountered hydrocarbons in the first well, Tupi, on 4 October 2006 and the second well, Tupi Sul, on 21 September 2007:
http://www.bg-group.com/MediaCentre/PressArchive/2006/Pages/100406-sx.aspx http://www.bg-group.com/MediaCentre/PressArchive/2007/Pages/092107-sx.aspx
The Iara well lies approximately 230 kilometres offshore the coast of Rio de Janeiro at a water depth of 2 230 metres. The well is still being drilled to evaluate deeper targets.
The Iara discovery is the sixth consecutive drilling success in the deep water pre-salt Santos Basin since BG Group and its partners began their drilling programme in 2005. BG Group has been present in offshore Brazil since 2000 and has interests in seven concessions in the Santos Basin covering a total area of approximately 7 450 square kilometres.
BG Group Chief Executive Frank Chapman said: "We are delighted to report another material discovery with Iara. The exceptional sequence and scale of our drilling success in this area reflects the world class status of the pre-salt Santos Basin, to which BG Group has substantial exposure through our extensive licence interests."
On completion of the well, the partners will further define the dimensions and characteristics of the reservoir through the submission of an Evaluation Plan to the National Petroleum Agency (ANP). There are matters discussed in this media information 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 the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2007. The Company 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.
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 27 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.
BG has interests in five concessions in the deep water Santos Basin. BM-S-9, 10, 11, 50, which are operated by Petrobras and BM-S-52 which is operated by BG Group.
BG holds operated interests in the BM-S-13 and 47 concessions in the shallow water Santos Basin.
BG also holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.
BG has a controlling stake (60.1%) in Brazil's largest gas distribution company, Comgas.
Media Enquiries:
Edel McCaffrey: +44 (0) 118 929 3508
Jo Thethi: +44 (0) 118 929 3110
Out of hours media mobile: +44 (0) 791 718 5707
Investor Relations: +44 (0) 118 929 3025
Website: www.bg-group.com
-ends-
Related Shares:
BG..L