BG Announces New Gas Discovery Near Armada Field

BG Announces New Gas Discovery Near Armada Field
Press Release	6 November 2002

BG Group plc announced today that it has discovered a gas accumulation in the South West Seymour prospect, located to the east of the BG-operated Armada field in the central North Sea.

South West Seymour lies within Block 22/5b, which BG, with 57 per cent equity, operates on behalf of partners TotalFinaElf (25 per cent) and Centrica (18 per cent).

The 22/5b-A12 well was spudded on 26 September 2002, and encountered a 150 feet hydrocarbon column within the Fulmar Sands with a further oil column within the underlying Pentland Sands. South West Seymour was drilled in a 38-day programme following completion of the Armada Field Phase 2 drilling programme. Drilling was carried out by the Galaxy III rig working from the Armada platform.

Speaking today, BG Group Executive Vice President for the UK Jon Wormley said:

"We are greatly encouraged by the discovery at South West Seymour, after an exploration programme which was delivered on time and on budget. We look forward to bringing it on stream. By drilling South West Seymour as part of the existing Armada development programme, BG Group and partners have been skilful in maximizing opportunities using existing resources."

The South West Seymour partners intend to sidetrack the well, with a view to first production in the second quarter of 2003, following necessary minor modifications of the Armada platform.

There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2001.

Notes to Editors

BG Group plc - The Integrated Gas Major - works across the spectrum of the gas chain, and is listed on the London and New York Stock Exchanges. Active on five continents in some 20 countries, it operates four business segments - Exploration & Production, LNG, Transmission & Distribution and Power. BG is a significant holder of hydrocarbon reserves on the UK Continental Shelf, where it operates the Blake, Armada and Easington Catchment Area fields. Internationally, the group's operational strategy is to develop gas markets and construct infrastructure in tandem with its exploration interests. BG's core areas are the UK, Egypt, Kazakhstan, South America, India and Trinidad & Tobago.

The BG-operated Armada gas/condensate fields (Fleming, Drake and Hawkins) span five exploration blocks. Production began in October 1997, following the successful completion of the Phase One project (facilities plus eight wells) on schedule and some £100 million below budget. The Phase Two drilling programme, consisting of three additional wells, began in December 2001. The Armada partners are: