Update on Tupi SW Well

New well confirms light oil in southern Tupi area, Santos Basin, offshore Brazil

BG Group has today confirmed that the ninth Tupi well, designated as 3-BRSA-854-RJS (3-RJS-678) and informally known as Tupi SW, was successful.

The well was drilled at a water depth of 2 152 metres, approximately 295 kilometres off the coast of Rio de Janeiro State, and 11 kilometres southeast of well 3-RJS-646 (3-BRSA-496), where drill stem testing is being conducted in pre-salt reservoirs.

Oil samples taken during wireline tests in well 3-RJS-678 confirmed the presence of a light (approximately 28 degree API) oil accumulation. The well encountered a 128-metre reservoir section and located the oil/water contact in the Tupi accumulation at the deepest of the potential depths previously being considered, further reducing uncertainty in estimating hydrocarbon volumes for the Tupi area.

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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.