BG Group confirms fourth consecutive well success in Santos Basin offshore Brazil

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.