BG Group Discovers Light Oil in Western Tupi Area, Offshore Brazil

BG Group has today confirmed that the eleventh well on the BM-S-11 concession in the Santos Basin, offshore Brazil, was successful.

The well, designated as 3-BRSA-865A-RJS (3-RJS-677A) and informally known as Tupi W, was drilled at a water depth of 2 139 metres, approximately 275 kilometres off the coast of Rio de Janeiro State, and 11 kilometres northwest of the original Tupi discovery well*.

Oil samples taken during wireline tests in well 3-RJS-677A confirmed the presence of a light oil accumulation (approximately 28° API). The well encountered a 90-metre reservoir section on the western flank of Tupi helping further delineate the size and quality of the field. Further testing will now be conducted on the 3-RJS-677A well and if those results confirm the initial productivity data, the consortium will consider the allocation of a Floating Production, Storage and Offloading vessel to the west area of Tupi.

The information obtained from this well adds further certainty to BG’s recoverable reserve and resource estimates for the Tupi field.

BG Group plc is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.

BG Group has a 25% interest in the Tupi, Iracema and Iara discoveries in BM-S-11 concession, offshore Brazil (Petrobras, operator 65%, Petrogal 10%).

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Source:  BG Group, December 16, 2010;