BG Group Spies Hydrocarbons at Corcovado Offshore Brazil

BG Group has encountered hydrocarbons in the Santos Basin, offshore Brazil. The exploration well 6-BG-6P-SPS, known as Corcovado-1, encountered hydrocarbons in a pre-salt reservoir within the BM-S-52 concession area. In accordance with Brazilian regulatory requirements, BG Group has provided the National Petroleum Agency (ANP) with this information.

BG Group and Petrobras intend to continue drilling to deepen Corcovado-1 and further evaluation of the well will be undertaken once this is complete. A second exploration well on the block is also planned in 2009 to comply with ANP commitments.

BG Group is the operator of the BM-S-52 concession during the exploration phase and has a 40% interest in the concession.

Petrobras holds the remaining 60%. Corcovado-1 is located in 800 meters of water, approximately 130 kilometers off the coast of Sao Paulo State. In the case of a declaration of the commerciality, Petrobras will be the operator of the Consortium during the production phase.

BG Group has been present in offshore Brazil since 2000 and has interests in seven concessions in the Santos Basin covering a total area of approximately 7,450 square kilometers.