Brazil: BG Group Confirms Success of a New Well on Tupi Accumulation

BG Group today confirmed the success of a new well known as Tupi Alto (3-BRSA-821-RJS or 3-RJS-674) on block BM-S-11 in the Santos Basin pre-salt, offshore Brazil. This is the seventh consecutive successful well on the Tupi accumulation and confirms the extended presence of light oil.

Wireline testing confirmed the presence of light oil at approximately 30° API and excellent reservoir properties across the key Sag reservoir. The information obtained from this well and other wells already drilled, reinforces the estimate of a potential 5 to 8 billion barrels of recoverable light oil and natural gas from the Tupi pre-salt reservoirs.

BG Group Chief Executive Frank Chapman said:

“The Tupi Alto well, in conjunction with the trend seen in previous Tupi appraisal wells, has confirmed excellent reservoir properties over a wide area in the Tupi field. Appraisal results continue to confirm the reservoir models in Tupi, Iracema and Guara by giving better definition in crestal areas and on the flanks of the fields. The results continue to de-risk the production outlook for these assets and allow us to optimise field development planning and capital efficiency.”

The Tupi Alto well, drilled by partners Petrobras (65%, operator), BG Group (25%) and Galp (10%), is located in the Tupi evaluation area in a water depth of 2 111 metres, approximately 275 km from Rio de Janeiro.

Drilling on Tupi Alto has been concluded and drill stem tests to evaluate reservoir productivity will be conducted in due course. The partners will continue the activities and investments foreseen in the Evaluation Plan approved by the Brazilian National Petroleum Agency.

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.

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Source: BG Group, June 24, 2010;