Successful Tupi field step-out appraisal well

8 April 2010

BG Group and partners announce successful Tupi field step-out appraisal well in the Santos Basin, Brazil

BG Group (25%) and partners, Petrobras (65% and operator) and GALP (10%), have successfully completed drilling a Tupi field appraisal well (3-RJS-666) in the BM-S-11 licence area, Santos Basin pre-salt, offshore Brazil.

The step-out appraisal well, designed to test the outer limits of the expected reservoir in the Tupi field, has confirmed the presence of hydrocarbons. Results of this and other wells previously drilled confirm Tupi's estimated recoverable resource to be 5 to 8 billion barrels of light oil and natural gas.

Further evaluation of the well data is ongoing and work on optimising field development options continues to move ahead rapidly. BG Group and its partners will continue with the activities and investments foreseen in the Evaluation Plan approved by the Brazilian National Petroleum Agency (ANP), including the drilling of further wells in the area. Oil and gas production from the first module of the Tupi development is expected by the end of 2010.

Drilling on Tupi appraisal well (3-RJS-666), in the BM-S-11 appraisal area, commenced in January 2010. The well is situated 12.5 kilometres north of the original Tupi discovery well (1-RJS-628A or 1-BRSA-369A) in 2 115 metres of water, approximately 265 kilometres from the Rio de Janeiro coastline.

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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

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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 to BG 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.