BG Makes Discovery in Tunisia

BG Tunisia reports that the Hasdrubal South West-1 well in the Gulf of Gabes is an oil discovery after testing light oil from the Tertiary El Garia Formation.

The well, nine kilometers south west of the Hasdrubal field, was drilled to confirm an extension of this proven accumulation. The Key Manhattan, a Global Santa Fe rig, carried out the drilling.

Peter Haynes, President BG Tunisia, said: "This well has shown that the Hasdrubal field extends to the south west as we had hoped. We will now evaluate the results of the well in preparation for submitting a plan of development as soon as possible. Our target for first production of these important Tunisian reserves remains for 2006."

The Key Manhattan rig has moved to the Miskar field where it will drill three additional development wells aiming to improve the reserves recovery and extend the plateau production period of the field.

The Hasdrubal South West-1 well was drilled in the BG-operated Amilcar permit with partner Entreprise Tunisienne d'Activités Pétrolières (ETAP). Both companies are also partners in the Ulysse permit.

BG Tunisia operates the Miskar gas field, 125 kilometers offshore in the Gulf of Gabes, and holds a 100 percent interest in the Miskar production concession. Gas is processed at the Hannibal plant and supplied, under a long-term contract, to Société Tunisienne de l'Électricité et du Gaz (STEG), Tunisia's state electricity and gas company.