BG Announces Record Well in Boliva

BG Group announced record test results from its 100% owned Los Suris field in southern Bolivia, using techniques never before deployed in that environment. On January 30, 2002, the Los Suris-5 well flowed at an average daily rate of 58 million cubic feet of gas and 716.4 barrels of condensate, thus exceeding all previous tests from any well drilled in BG Bolivia's 100% owned producing fields. The flow rates were a direct result of the use of an innovative completion technique, used for the first time in Bolivia.

The Los Suris-5 development well, which spudded on October 31, 2001 and is the first operated well drilled by BG in Bolivia, is aimed at supporting the recently completed La Vertiente (LVT) gas plant expansion project in furthering BG's strategy to monetise its Bolivian gas reserves in Brazil.

BG Deputy Chief Executive Bill Friedrich commented: "The outstanding results from Los Suris underline the importance of applying new technologies to extract maximum shareholder value in our operated Bolivian fields. With the upgrading of the La Vertiente gas plant last September, BG completed its plan to link hydrocarbon production to gas processing, and connect it to Brazil through the Bolivia to Brazil pipeline. The Los Suris success enhances BG's ability to make long term gas supply commitments to the growing Brazilian market."

BG supplies gas from Bolivia to the Sao Paulo distribution company Comgas, whose demand for BG supply is currently approximately 2.1 million cubic meters a day (74.1 million cubic feet a day).

BG Bolivia General Manager Ed Miller commented: "A major contributor to the success of the Los Suris-5 well was the application, in this mature province, of new technology successfully used by BG elsewhere in the world. At BG Bolivia, we are also rightly proud of our outstanding Health and Safety record of no lost time incidents, during what was a highly demanding operation in a challenging environment."

The flow rate tests from the Los Suris-5 well were conducted through a 56/64th-inch choke from a Carboniferous aged Chorro Formation sandstone reservoir. The well reached a total depth of 4096 meters in December 2001, and was undertaken using an innovative four and a half inch monobore completion.