Mzia well test supports potential hub development

BG Group plc

27 August 2014

Mzia well test supports potential hub development offshore Tanzania

BG Group plc (LSE: BG.L), a world leader in exploration and LNG, today announced that results from a recently completed second drill-stem test (DST) on the Mzia discovery in Block 1, offshore southern Tanzania, provided further support for a hub development to supply a potential onshore LNG project.

The DST on the Mzia-3 appraisal well, drilled in approximately 1 800 metres of water around six kilometres north of the original Mzia-1 discovery, included sustained gas production at a maximum flow rate of 101 million standard cubic feet per day (mmscfd), equivalent to approximately 17 000 barrels of oil equivalent per day (boed).

In May 2013, BG Group announced a test on the Mzia-2 well, the first done on a Cretaceous discovery in deep water offshore Tanzania, had flowed at an equipment-constrained rate of 57 mmscfd, or around 9 500 boed.

Sami Iskander, BG Group's Chief Operating Officer, said: "The excellent results from this latest drill-stem test further reduce reservoir risk, a critical factor as we progress design of the upstream production facilities and infrastructure. Also, the Mzia-3 DST, along with previous appraisal activities, supports our efforts to optimise the value of a development across our Block 1 discoveries."

Mzia, discovered in 2012, is a multi-layered field of Upper Cretaceous age with a gross gas column in excess of 300 metres. The Mzia and Jodari discoveries in Block 1 are estimated to hold around 9 trillion cubic feet (tcf) of total gross recoverable resources, with around 15 tcf of total gross recoverable resources, around 2.5 billion boe, across Blocks 1, 3 and 4.

The drill ship, the Deepsea Metro-1, will now move north to complete the exploration and appraisal programme on the Block 4 discoveries by drilling the Kamba-1 well.

BG Group has a 60% interest in, and is operator of, Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 20% and Pavilion Energy 20%.

Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group 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 to

BG Group's Annual Report and Accounts for the year ended 31 December 2013. 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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