New well confirms good quality oil in Iara, Brazil

2 March 2011

New well confirms good quality oil in Iara, Santos Basin, offshore Brazil

BG Group today announced the successful completion of drilling on the Iara Horst well (3-BRSA-891A-RJS) in the BM-S-11 concession in the Santos Basin, offshore Brazil. The well encountered good quality oil (28˚ API) in a thick reservoir section.

The well was drilled at a water depth of 2 279 metres, approximately 230 kilometres off the coast of Rio de Janeiro. Initial results from Iara Horst have demonstrated superior reservoir characteristics compared with the original discovery well* which is located around eight kilometres away.

The discovery is currently held under the Iara Evaluation Plan in block BM-S-11. The Lula and Cernambi fields, for which Declaration of Commerciality was recently announced **, are located in another part of the same BM-S-11 concession.

Further evaluation activity will now continue on Iara in line with the National Petroleum Agency (ANP) approved appraisal plan which will include a Drill Stem Test in 2011. 

BG Group has a 25% interest in BM-S-11 concession, offshore Brazil (Petrobras, operator 65%, Petrogal 10%).

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Notes to Editors:

* http://www.bg-group.com/MediaCentre/PressArchive/2008/Pages/11Sept08.aspx

** http://www.bg-group.com/MediaCentre/PressArchive/2010/Pages/29Dec2010.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) and transmission and distribution 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 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.