BG International is investigating development options for its Blake field oil discovery in the outer Moray Firth, with a view to seeking sanction towards the end of 1999.

One of the main options being considered is a sub-sea development tied back to the Talisman operated Ross field. A well drilled recently in Block 13/29b has confirmed an extension to the field, and agreement has been reached between the two licence groups on equity participation: Block 13/24 88% , Block 13/29b 12%.

As a consequence, participation in the Blake field has been agreed as follows:
BG 44%, Amerada Hess Ltd. 30.6%, Rigel Petroleum UK 17.6%, Talisman 5.4% and Statoil UK 2.4%.

Initial development plans will concentrate on the drainage of a reservoir estimated to contain recoverable reserves of 50 to 75 million barrels of light oil. There is also the potential to develop significant additional volumes outside the main reservoir.

Notes to editors:

The discovery well, 13/24b-3, was drilled in March 1997, and tested sweet 32 degree API oil at a maximum flow rate in excess of 2600 barrels per day on a 40/64 inch choke. It was the first well to be drilled by BG on Block 13/24b, which was awarded in the 14th UK licensing round in 1993.

Three other appraisal wells in Block 13/24 were drilled in 1998, one of which was tested at 4,000 barrels per day.

The 13/29b-6 well drilled in 1999 was tested at 3950 barrels per day.

Blake Field Equity Allocation:

	(88%)		(12%)	NET BLAKE EQUITY
LICENCE BLOCK	P101	P810	P729
COMPANY
BG International Limited	50%	50%	-	44.0%
Rigel Petroleum UK Limited	20%	20%	-	17.6%
Amerada Hess Limited	30%	30%	35%	30.6%*
Talisman Energy (UK) Limited	-	-	25%	3.0%*
Talisman North Sea Limited	-	-	20%	2.4%*
Statoil (U.K) Limited	-	-	20%	2.4%

(*Talisman Energy Inc. recently announced that it has reached an agreement with Amerada Hess Limited under which Amerada Hess will assign its interest in the Blake field to Talisman).

BG International was formed in May 1999 by the merging of two BG businesses, BG Exploration and Production and BG International Downstream. BG International is the operator of the Armada field in the Central North Sea, is a significant holder of hydrocarbon reserves on the UKCS, and is involved in gas and oil developments in more than a dozen countries. BG is not an abbreviation for British Gas.