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Press Release
4 March 1997

BG Exploration and Production Limited Announces an Oil Discovery in UK Northern North Sea


BG Exploration and Production Limited (BG E&P) today announced an oil discovery in UK Block 15/23d, located 160 kms northeast of St Fergus, and 85 kms west of the BG operated Armada fields.

A gross oil column of 266 feet was encountered in Upper Jurassic Sandstones, which tested on a 32/64 inch choke at flow rates in excess of 7,500 barrels per day of 43.8 API oil and 9.0 million standard cubic feet per day of associated gas.

Frank Chapman, managing director, BG E&P said: "The UKCS, where BG E&P is a major holder of reserves and exploration acreage, continues to be a core area for us. We are delighted to announce this important discovery and have already begun conceptual studies so as to reduce time to first production. Discussions have started with adjacent field operators to evaluate the possibility of a fast track development, which BG E&P will be discussing with the DTI in due course."

The discovery well, 15/23d-13 was a high pressure, high temperature well, which started drilling operations on November 15, 1996 and completed testing on February 16, 1997. The well will be suspended for re-entry at a later date and possible use as a development well.

BG E&P is operator of Block 15/23d and holds a 60% interest, in partnership with Agip (UK) Limited, which holds the remaining 40%. This is the first well to be drilled by BG E&P on block 15/23d, following its award during the 14th Round of UK Licensing, in 1993.

Notes to editors

Following the suspension of the 15/23d-13 well, the Santa Fe 135 rig will begin drilling another BG E&P operated exploration well in block 13/24b, situated in the Moray Firth immediately to the north of the Ross Field, in which BG E&P is an equity holder.

The 15/23d-13 announcement follows confirmation on February 20 of a significant discovery in Block 30/2c, in which BG E&P has a 35 per cent interest, having farmed into the block in 1995. The Jade field appraisal well flowed 91 million standard cubic feet per day of gas, and 9,700 barrels per day of condensate, from two zones.

BG E&P is the exploration and production division of BG plc, formerly British Gas plc.

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