BG Confirms New Well Good Quality Oil In Santos Basin, Offshore Brazil

BG Group today announced the successful completion of drilling on the Iara Horst well (3-BRSA-891A-RJS) in the BM-S-11 concession in the Santos Basin, offshore Brazil. The well encountered good quality oil (28 degrees API) in a thick reservoir section.

The well was drilled at a water depth of 2 279 metres, approximately 230 kilometres off the coast of Rio de Janeiro. Initial results from Iara Horst have demonstrated superior reservoir characteristics compared with the original discovery well which is located around eight kilometres away.

The discovery is currently held under the Iara Evaluation Plan in block BM-S-11. The Lula and Cernambi fields, for which Declaration of Commerciality was recently announced, are located in another part of the same BM-S-11 concession.

Further evaluation activity will now continue on Iara in line with the National Petroleum Agency (ANP) approved appraisal plan which will include a Drill Stem Test in 2011.

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