BG International Limited, a subsidiary of BG plc, has acquired a 50 per cent interest in five Israeli offshore exploration licences from a group of Israeli companies and limited partnerships, led by Isramco Incorporated, the current operator.

The acreage covers an area of 2,000 square kilometres in the Mediterranean Sea. The farm-in obligations, including BG's share of the costs of the current drilling programme, will total some US$10 million to BG.

The licences are Med Yavne (Block 239); Med Tel Aviv (Block 240); Med Hadera (Block 241); Med Ashdod (Block 242); and Med Hasharon (Block 243).

Drilling is continuing on the Or-1 well in the Med Yavne concession. The well was spudded in early October and another well, Or-South, is due to commence drilling following completion of Or-1. BG will take over as operator for Med Yavne, following this drilling programme.

Frank Chapman, Executive Director BG plc and President BG International said, "This investment further enhances our objectives in Israel where we gained exploration rights on other acreage earlier this year."

Following this transaction, the shareholders of the Med Yavne licence are:

BG International Ltd	50 per cent (operator)
Isramco Group	42 per cent
Delek Drilling Ltd	8 per cent