BG Awarded Key Blocks in 21st UK Licensing Round

The U.K. Department of Trade and Industry has awarded BG Group North Sea Blocks 20/11, 20/12, 13/22c and 13/27 (part) in the 21st UK Licensing Round. BG will operate Blocks 20/12, 13/22c and 13/27 (part), and will operate the development phase of Block 20/11.

The acreage consolidates BG's position in the Outer Moray Firth, in core areas adjacent to the Buzzard, Blake and Atlantic & Cromarty fields.

Speaking today, Jon Wormley, BG Executive Vice President for the UK, said: "We are delighted with the results of the 21st UK Licensing Round, which greatly strengthens BG's positions in the "hub" areas where we already have significant operations. We are especially pleased being named the sole operator of three of the blocks and the operator of the development phase of one of them - a recognition of BG's long-standing expertise in North Sea exploration and production. The blocks and operatorship allow us to build upon the excellent track record of successes in the North Sea and to prove that there are still opportunities available in the UK."

Blocks 20/11 and 20/12 are to the south/south-east of the Buzzard Oil Field where BG holds 19.99% equity in the southern P986 part of the field and 29.412% in the northern P928 S part of the field. BG (62.5% equity) will operate 20/12 with its partner Intrepid (37.5%). EnCana (30%) will operate the exploration phase of Block 20/11, with BG (31.25%) being named operator of the development phase. Other partners include Intrepid (18.75%), OMV (17.5%) and Edinburgh Oil & Gas (2.5%). The total work commitments on these two blocks include a 3D seismic survey and a well in Block 20/11 to test an Upper Jurassic prospect in 2004.

Blocks 13/22c and 13/27 are located to the west of BG's Blake Oil Field and Atlantic & Cromarty Gas Fields. BG (50%) will operate both blocks with partners Intrepid (30%) and Paladin (20%). Work commitments on both blocks include seismic reprocessing and one contingent well.