BG Group - with partners Talisman Energy and Paladin Resources - has successfully tested two zones in the Blake Flank structure in the North Sea, with an appraisal well which spudded on September 17.

Tests at the first zone, over the Coracle Formation, flowed at a rate of 2450 barrels of oil per day on a 56/64th inch choke. The second test was designed to determine the productivity of the overlying Captain sands, and it flowed at 3000 barrels of oil per day on a 64/64th inch choke.

A sidetrack to the well 13/24a-8 is now being drilled to confirm volumes within the structure. If this proves successful, BG and partners intend to fast-track the Blake Flank development.

The Blake Flank structure lies directly to the north-east of the Blake Channel structure, which was brought on stream by the Blake field owners in June 2001. BG Group is the field operator and holds a 44 per cent interest, with Talisman Energy holding 53.6 per cent and Paladin Resources 2.4 per cent.

The Blake field - located 64 miles from Aberdeen in the Outer Moray Firth - started production on June 27 2001, just 18 months after project sanction. It has estimated gross field reserves of around 70 million barrels of oil, and has reached a peak flow of 60,000 barrels of oil per day.

Notes to Editors

BG Group has one of the most significant exploration and production businesses in the UK Continental Shelf. It operates the Armada complex in the central North Sea and the Easington Catchment Area in the southern North Sea. It is a partner in more than 20 other producing fields. In June 2001 it announced the significant "Buzzard" oil find in the northern North Sea. Internationally, BG - The Integrated Gas Major - has operations in some 20 countries. It is listed on the London and New York Stock Exchanges.

Talisman Energy UK Group is a subsidiary of Talisman Energy Inc - one of the largest independent Canadian oil and gas producers, with operations in Canada, the North Sea, Indonesia, Malaysia and the Sudan. Talisman is also conducting exploration in the United States, Algeria, Trinidad and Colombia. The company's shares are listed on the Toronto and New York Stock Exchanges under the symbol TLM.

Paladin Resources plc is a British independent oil and gas exploration and production company listed on the London Stock Exchange, with interests in the UK, Danish and Norwegian North Sea, Indonesia, USA, Romania, Tanzania and Tunisia.