8 April 2009

Corcovado-1, Santos Basin, offshore Brazil, encounters hydrocarbons

BG Group today announced that it 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 per cent interest in the concession.  Petrobras holds the remaining 60 per cent. Corcovado-1 is located in 800 metres of water, approximately 130 kilometres off the coast of Sao Paulo State.

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 kilometres. 
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Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.

BG Group has interests in five concessions in the deep water Santos Basin.  BM-S-9, 10, 11, 50, which are operated by Petrobras and BM-S-52 which is operated by BG Group. 

BG Group holds operated interests in the BM-S-47 and BM-S-13 concessions in the shallow water Santos Basin.  BG Group also holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.

BG Group has a controlling stake (60.1 per cent) in Brazil's largest gas distribution company, Comgás.

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There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to BG Group's annual report and accounts for the year ended 31 December 2008.  BG Group does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.