BG Makes Discovery at Armada Field in the North Sea

BG has discovered a gas accumulation in the South West Seymour prospect, located to the east of the BG-operated Armada field in the central North Sea.

South West Seymour lies within Block 22/5b. The 22/5b-A12 well was spudded on September 26, 2002, and encountered a 150 feet hydrocarbon column within the Fulmar Sands with a further oil column within the underlying Pentland Sands. South West Seymour was drilled in a 38-day program following completion of the Armada Field Phase 2 drilling program. Drilling was carried out by the Galaxy III rig working from the Armada platform.

Speaking today, BG Group Executive Vice President for the UK Jon Wormley said: "We are greatly encouraged by the discovery at South West Seymour, after an exploration program which was delivered on time and on budget. We look forward to bringing it on stream. By drilling South West Seymour as part of the existing Armada development program, BG Group and partners have been skilful in maximizing opportunities using existing resources."

The South West Seymour partners intend to sidetrack the well, with a view to first production in the second quarter of 2003, following necessary minor modifications of the Armada platform.

The BG-operated Armada gas/condensate fields (Fleming, Drake and Hawkins) span five exploration blocks. Production began in October 1997, following the successful completion of the Phase One project (facilities plus eight wells) on schedule and some £100 million below budget. The Phase Two drilling program, consisting of three additional wells, began in December 2001. The Armada partners are: BG as operator with 45.27%; BP with 18.20%; TotalFinaElf with 12.53%; ConocoPhillips with 11.45%; Centrica with 6.97%; Agip with the remaining 5.58%.