Second Tanzanian well also discovers gas

Second Tanzanian well also discovers gas

BG Group today announced that its second Tanzanian exploration well, Chewa-1, has also discovered gas. The well, located in Block 4 approximately 80 kilometres offshore southern Tanzania in a water depth of around 1 300 metres, is some eight kilometres north-west of BG Group's Pweza-1 gas discovery announced in October*.

Chewa-1, operated by Ophir Energy plc (40%), is the second of a three-well initial work programme planned for Blocks 1, 3 and 4 offshore southern Tanzania. The initial work programme also includes the acquisition of 4 000 square kilometres of 3D seismic data. BG Group (60%) has the option to assume operatorship of all three Blocks upon completion of the initial work programme.

BG Group Chief Executive Frank Chapman said: "This is an encouraging start to our campaign in Tanzania. We have a large acreage position to explore and an extensive exploration programme will be needed to assess the full potential of this new play."

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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

* http://www.bg-group.com/MediaCentre/Press/Pages/22Oct2010.aspx

In May 2010, BG Group received consent from the government of the United Republic of Tanzania to farm-in to interests held by Ophir Energy plc offshore southern Tanzania in Blocks 1, 3 & 4 of the Mafia Deep Offshore Basin and the northern portion of the Ruvuma basin.

http://www.bg-group.com/MediaCentre/Press/Pages/26May2010.aspx

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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.