BG Participates in New Oil Discovery Offshore Brazil

BG Group has participated in the discovery of a new oil field in the Santos Basin, offshore Brazil. The discovery, known as Carioca, is within the BM-S-9 concession, where BG Group holds a 30 percent interest along with operator Petrobras (45 percent) and Repsol YPF Brasil S.A. (25 percent).

The Carioca oil field is located in 2,140 meters of water approximately 273 kilometers off the south coast of Rio de Janeiro. It is close to the Tupi discovery in Block BM-S-11 (BG Group 25%) which was announced in October 2006.

The exploration well flowed at a rate of approximately 2 900 barrels of 27 degrees API oil and 57 thousand cubic meters of gas per day. The rate was constrained by test equipment.

BG Group Chief Executive, Frank Chapman said:
"This is another significant discovery offshore Brazil, and builds on the Tupi discovery last year which is located 70kilometers to the east in the BM-S-11 concession.

"This is BG's third consecutive exploration well to discover hydrocarbons in the new Santos basin pre-salt play, and this exceptional sequence enhances our confidence in the material exposure that BG has to this highly prospective area."

In addition to Block BM-S-9, BG Group has interests in a further six concessions in the Santos Basin - BM-S-10, 11, 13, 47, 50 and 52 - covering a total area of 8 130 square kilometers.

BG has non-operated interests in three concessions in the deep water Santos Basin: BM-S-9, 10 and 11.

In 2004, BG acquired a 100% operated interest in the BM-S-13 concession in the shallow water Santos Basin.

In 2005, BG was awarded three further concessions in the offshore Santos Basin (BM-S-47, 50 and 52), as well as one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.

BG also has a controlling stake (60.1%) in Brazil's largest gas distribution company, Comgas.

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