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BG Group today confirmed the success of the Tupi Sul appraisal well in the BM-S-11 concession in the Santos Basin, offshore Brazil. The appraisal well flowed at a rate of 2 000 barrels of oil and 65 thousand cubic metres of gas per day, with the rate constrained by surface facilities. The well, located approximately 9.5 kilometres southwest from the Tupi discovery has proved the southern extension of that discovery. BG Group holds a 25% interest in the concession together with operator Petrobras (65%) and Galp Energia (10%).
The Tupi Sul appraisal well is the fourth consecutive success for BG Group in the deepwater Santos Basin since the company began drilling in 2005. Previous successes for BG Group are Parati (BM-S-10, September 2006), Tupi (BM-S-11, October 2006) and Carioca (BM-S-9, September 2007). BG has been present in offshore Brazil since 2000 and has interests in seven concessions in the Santos Basin covering a total area of approximately 8 130 square kilometres.
BG Group Chief Executive Officer, Frank Chapman said:
"These are excellent results from the Tupi Sul appraisal well which maintain our 100% success rate in the deep water Santos Basin. This outstanding sequence enhances our confidence in this emerging hydrocarbon province and supports our strategy in the region."
The partners will continue implementing the evaluation plan, the key objectives of which are to verify the dimensions and characteristics of the reservoir and to establish the economic viability of development under these specific geographic conditions - the Tupi Sul well, which flowed light oil (28 degrees API), is located in 2 166 metres of water approximately 286 kilometres off the south coast of Rio de Janeiro.
In addition to BM-S-11, BG Group's other interests in the Santos Basin are in the BM-S-9, 10, 13, 47, 50 and 52 concessions.
Notes to Editors:
BG Group plc is a global natural gas business. Active on five continents in over 25 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power.
BG has interests in five concessions in the deep water Santos Basin:
BM-S-9, 10, 11, 50 and 52
BG holds operated interests in the BM-S-13 and 47 concessions in the shallow water Santos Basin.
BG also holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.
BG has a controlling stake (60.1%) in Brazil’s largest gas distribution company, Comgas.
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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 2006. The Company does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use the term “gross reserves” in this release which the SEC's guidelines strictly prohibit us from including in filings with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F, File No. 1-09337, available from us at BG Group, 100 Thames Valley Park Drive, Reading RG6 1PT, Attention: Company Secretary. You may read and copy this information at the SEC's public reference room, located at 100F Street N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. This filing is also available at the internet website maintained by SEC at http://www.sec.gov.
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