BG Egypt and Edison have announced the successful drilling of the Saurus-1 well in the West Delta Deep Marine Concession (WDDM), off the Nile Delta, Egypt.

The discovery continues a 100 per cent drilling success rate in the WDDM concession, bringing the total number of successful exploration and appraisal wells to 13.

Saurus-1, located 120 kilometres north of Alexandria, is the first well to be discovered in the Saurus prospect in the west of the concession in a water depth of 630 metres. It tested on a 56/64 inch choke at a flow rate of 30.89 million standard cubic feet of gas per day.

High quality geoscience interpretation using 3-D seismic data enabled the well to deliver as originally predicted. An extensive logging programme including pressure tests has confirmed a high net to gross channel in excess of 100 metres thick which contains a fully connected gas column.

Stuart Fysh, Vice President, BG Egypt, said: "Given our experience and knowledge of drilling in deepwater terrain in this concession, BG and partners were able to implement a fast-track economic drilling programme realising substantial cost savings. Together with partners we have developed innovative processing technology which enables us to map gas reserves from seismic data, enhancing our reputation as best in class to drill deepwater gas prospects quickly and efficiently."

Burullus Gas Company, a joint venture between BG Egypt, Edison International S.p.A., and Egyptian General Petroleum Corporation (EGPC), is responsible for the drilling and field development of the WDDM Concession.

Notes to Editors

BG Group has been active in Egypt for over ten years and has achieved a highly successful record in the country via investments in the upstream and downstream sectors.

Significant projects include the offshore Rosetta project, which came onstream in January this year and delivers gas into the Egyptian national grid under a 25-year agreement with the Egyptian General Petroleum Corporation; development of the West Delta Deep Marine (WDDM) Concession; and the Nile Valley Gas Company, which delivers gas to customers in the Upper Egypt franchise.

Edison International S.p.A., is BG Egypt's partner in the Rosetta and WDDM concession and, together with other local partners, in the gas transportation and distribution business through the Nile Valley Gas Company. Edison is Italy's leading private energy group.

The Egyptian General Petroleum Corporation (EGPC) and the recently established Egyptian Natural Gas Holding Company (ENGHC) are the State corporations that presently plan, implement and oversee policies relating to oil and gas corporations in Egypt. EGPC and ENGHC co-ordinate these activities through their participation in companies involved in exploration, production, refining, processing, petrochemicals, distribution and transportation.

BG Egypt, Edison and EGPC are developers of the proposed US$900 million Egyptian LNG export project. The project is on track for project sanction in the second quarter of 2002. The partners have recently appointed John Earl of BG Group as its Chief Executive Officer.