BG Group announced today further results from the "Buzzard" 20/6-4 appraisal well northeast of Aberdeen in the UK North Sea. These reinforce the reserves figures of in excess of 400 million barrels, as announced by BG on January 17, 2002. (See New Appraisal Boosts Reserves for Buzzard)

The well, in which BG is a 19.99% interest-holder, recently completed drill-stem testing in two separate zones, and flowed at aggregate rates of 11,100 barrels per day of light oil (4,000 and 7,100) on a 36/64th-inch choke.

Located in the PanCanadian-operated licence P986, the 20/6-4 appraisal well lies 2.1 kms north of the original "Buzzard" discovery well, which was drilled in the summer of 2001.

BG Executive Vice President Jon Wormley said today:

"These flow rates reinforce the extent of the excellent quality reservoir in the "Buzzard" discovery. The next step is to sidetrack the well to continue delineation of the reservoir - and so move the project one more step towards sanction."

The 20/6-5 well is currently drilling 2 kms northeast of the 20/6-4 appraisal well. The primary purpose is to identify the location of the oil/water contact in the central panel of the field, and to undertake water tests.There are no plans to perform any drill-stem tests for hydrocarbons in this well.

Notes to Editors

The original "Buzzard" discovery well lies 100 kms northeast of Aberdeen, and was drilled in 320 feet of water. During testing, the well flowed at 6.547 barrels per day of light oil and 0.97 million cubic feet per day of natural gas on a 36/64th-inch choke. These rates were constrained by the limits of the testing equipment. The recoverable reserves announced in the summer of 2001 were estimated to be between 200 and 300 million barrels.

BG Group holds a 19.99% interest in licence area P986, which contains the discovery well, with other interest-holders being PanCanadian Energy, the operator (45.01%), Intrepid Energy North Sea Ltd (30%) and Edinburgh Oil & Gas Plc (5%).

BG Group is a significant holder of hydrocarbon reserves on the UK Continental Shelf, where it operates the Blake, Armada and Easington Catchment Area fields. The company is also involved in gas and oil developments in some 20 countries worldwide.