New well confirms light oil in western Tupi area

16 December 2010

New well confirms light oil in western Tupi area, offshore Brazil

BG Group has today confirmed that the eleventh well on the BM-S-11 concession in the Santos Basin, offshore Brazil, was successful.

The well, designated as 3-BRSA-865A-RJS (3-RJS-677A) and informally known as Tupi W, was drilled at a water depth of 2 139 metres, approximately 275 kilometres off the coast of Rio de Janeiro State, and 11 kilometres northwest of the original Tupi discovery well*.

Oil samples taken during wireline tests in well 3-RJS-677A confirmed the presence of a light oil accumulation (approximately 28° API). The well encountered a 90-metre reservoir section on the western flank of Tupi helping further delineate the size and quality of the field. Further testing will now be conducted on the 3-RJS-677A well and if those results confirm the initial productivity data, the consortium will consider the allocation of a Floating Production, Storage and Offloading vessel to the west area of Tupi.

The information obtained from this well adds further certainty to our recoverable reserve and resource estimates for the Tupi field.

-ends-

Notes to Editors:

* http://www.bg-group.com/MediaCentre/PressArchive/2006/Pages/100406-sx.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), 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 25% interest in the Tupi, Iracema and Iara discoveries in BM-S-11 concession, offshore Brazil (Petrobras, operator 65%, Petrogal 10%).

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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.