BG. Gas prices over 14% up recently with more to come - global LNG expanding and further exploration rights --- about to break out.

http://www.moneyam.com/action/news/showArticle?id=989336

dikytree.

StockMarketWire.com
BG Group unveils strong third quarter results with earning sup 16% at $1,189m and total operating profits 17% up at $2,273m.

Chief executive Sir Frank Chapman said the group achieved good cost and schedule performance on key projects in Australia and Brazil and reached further asset sales agreements placing us well ahead of our capital release plan.

He said the rise in earnings was driven by a 13% increase in E&P operating profit to $1.3bn and a continued robust performance of the LNG business, where operating profit was up 24% to $767m.

He continued: "Production rose by some 5% as new projects ramped up, but was held back by the previously announced shutdown of the non-operated Elgin/Franklin field and our earlier decision to scale back drilling in the USA due to low natural gas prices.

"As a result of these factors, along with the deferral of the Jasmine start-up to 2013, production growth in 2012 of some 3% is now forecast.

"Alongside these factors, which will continue to affect production in 2013, we have adjusted our 2013 plans to accommodate an extended sub-sea tie-in schedule for Brazil's Sapinhoá and Lula NE wells.

"We have also reflected lower production in Egypt where the Phase 7 compression project has been less effective than expected in arresting reservoir decline. In aggregate, these factors are expected to result in 2013 volumes being broadly in line with 2012.

"Looking ahead, our growth projects continue with the planned installation in Brazil of the two new FPSOs in 2013. This will be followed in 2014 by the installation of two further FPSOs in Brazil and the start-up of QCLNG in Australia.

"We also progressed the six further FPSOs planned to come onstream in Brazil in 2015 and 2016. The BM-S-9 partners intend to tender for a further FPSO for Carioca, which will bring to 15 the total number of FPSOs to be deployed on the 'big-five' Santos Basin discoveries."

BG Group signs Heads of Agreement for sale of QCLNG stake and new LNG supply

BG Group today announces that it has signed a Heads of Agreement (HOA) with China National Offshore Oil Corporation (CNOOC) for the sale of certain interests in the Queensland Curtis LNG (QCLNG) project in Australia for $1.93 billion and the sale of liquefied natural gas (LNG) from
BG Group's global LNG portfolio. Fully-termed transaction agreements are expected to be executed in the first half of 2013, and upon closing, CNOOC will reimburse BG Group for its share of QCLNG project capital expenditures incurred from 1 January 2012.

Just bought a few @1157.

Market overview: BG plummets after asset sales forced on them
Date: Wednesday 31 Oct 2012


0942: This is what analysts at Seymour Pierce have to say on the subject of BG: "The company currently has an asset divestment programme that remains ongoing to reduce their net debt exposure; this would suggest that the disposal of their Australian LNG interest was forced upon them rather than a strategic decision." FTSE 100 up 1 to 5,850.

Adjusted for exceptional costs or benefits not derived from regular operations, London-listed BG's profit for the quarter was $1.19 billion, versus $1.02 billion in the same period a year earlier. This was well below average expectations of $2.06 billion in a Dow Jones Newswires poll of nine analysts.

Total oil and gas production was 646,000 barrels of oil equivalent a day, a 4.6% rise from the same period a year ago. Analysts were expecting production of 664,000 barrels of oil equivalent a day.

I've added @1058 - mad?

Certifiable! ;o)

Think I will wait for the sp to settle.

I'm out half @1134.5

StockMarketWire.com
Societe Generale has downgraded its recommendation on natural gas company BG Group (LON:BG.) to "hold" from "buy" in reaction to yesterday's production downgrade. The City broker has reduced its share price target by over 20 per cent to 1,300 pence from 1,650 pence as it changes its basis of valuation. Analyst Irene Himona said: "Panic was caused by BG releasing its third quarter results a day ahead of schedule and issuing at the same time a production downgrade for 2012-13. The oil industry is full of cases of production downgrades and missed growth targets; it is regrettable that the one stock perceived, priced and marketing itself as 'the growth stock' in the sector joins that sad precedent. BG remains a large, low cost resource holder and successful explorer, which has fallen down on execution, as is often the case. Pricing the stock as a differentiated investment case is hard to defend near term. On a 12 month view we downgrade from buy to hold."

Sale of Comgás stake completed

BG Group today completed the previously announced transaction to sell the Group's entire 60.1% holding in Comgás for a consideration of Brazilian reais 3.4 billion, or approximately $1.7 billion, to Cosan S.A. Indústria e Comércio (Cosan). In addition, debt on the BG Group balance sheet has been reduced by some $1 billion.

"DJ BG Group Secures $1.8 Billion US Loan for Australian LNG Project

By James Herron

LONDON--U.K.-listed oil and gas company BG Group PLC (BG.LN) said Monday it has secured a $1.8 billion loan from U.S. Export-Import Bank that will be used to purchase the services of American companies for the construction of a major liquefied natural gas project in Queensland, Australia.

The Queensland Curtis LNG project, which will ship gas to Asia starting in 2014, saw a dramatic increase in its cost in May to $20.4 billion, from $15 billion previously. Several other LNG projects in Australia, including ones operated by Santos Ltd. (STO.AU) and Chevron Corp. (CVX) have suffered in a similar way due to rising labor and raw material costs and the strength of the country's currency.

The U.S. loan, combined with a new $3 billion syndicated borrowing facility agreed last month, will underpin delivery of Curtis LNG and other key projects, BG Group said in a statement.

The Curtis project will produce 8.5 million tons of LNG a year, using natural gas extracted from Queensland's vast coal seams. BG Group already has long-term supply agreements with buyers in China and Japan for the gas, with first deliveries starting in 2014.

The U.S. Export-Import Bank aims to boost exports by providing credit to buyers of goods and services from American companies. Some industry experts say Curtis and other Australian LNG projects may actually find themselves competing in Asia with LNG shipments from the U.S. in the second half of this decade, as the supply surplus created by the North American shale gas boom finds its way onto international markets.

BG is entering one of the most challenging periods in its history, as it attempts to deliver major oil and gas projects in Brazil and Australia, while also making the transition to a new management team. Current Chief Executive Frank Chapman, who over 12 years built BG Group from a largely U.K.-focused gas supplier to a major international energy company, will retire next month to be replaced by Chris Finlayson, the company's head of exploration strategy and technology."

Looks like BG wasnt the only company to be slightly wrong footed in Oz.

First production - Sapinhoa field. offshore Brazil

BG Group and its consortium partners today announced the start of commercial production on time and on budget at the Sapinhoá field in block BM-S-9 offshore Brazil, one of the Group's "big five" discoveries in the pre-salt Santos Basin.

2012 FOURTH QUARTER & FULL YEAR RESULTS

Key Points
· Full year earnings up 3% to $4.4 billion

· Fourth quarter earnings down 29% to $1.0 billion; 2011 benefited from a $277 million tax credit

· Full year production up 3%, consistent with third quarter guidance

· Full year cash flow from operations up 10% to $10.7 billion; gearing at 24%

· Full year dividend increased by 10% to 26.14 cents per share (16.67 pence per share)

· In January, first production from 120 000 bopd FPSO on Sapinhoá field; on schedule and budget

· QCLNG on track for first LNG in 2014; $20.4 billion capex guidance reaffirmed

· 2013 production outlook of 630 kboed to 660 kboed

· 2013 profit outlook for new LNG Shipping & Marketing segment slightly ahead of 2012 results, at $2.5 billion to $2.7 billion

.

Quite an intraday turn around.

BG Group Management Update

Fabio Barbosa appointed Chairman BG South America and to step down as CFO

BG Group today announced that Fabio Barbosa has been appointed Chairman BG South America, reporting to Chief Executive Chris Finlayson, and has stepped down as Chief Financial Officer (CFO) and Executive Director for personal reasons. Fabio has also stepped down as a member of BG Group's Group Executive Committee and other committees.

Excellent results from Jodari appraisal offshore Tanzania

BG Group today announced it had completed its appraisal programme in the Jodari field of Block 1 offshore Tanzania, with a drill stem test on the original natural gas discovery well confirming the excellent quality of the Tertiary reservoir.

The drill stem test on the Jodari-1 well, the first in deep water off Tanzania, flowed at a maximum rate of 70 million standard cubic feet of natural gas per day, constrained by testing equipment. The results showed better than expected reservoir properties, including high connectivity and demonstrated that development wells could produce at higher rates.

The drill stem test was conducted on one of the three successful wells on the Jodari field, in 1150 metres of water and approximately 39 kilometres off the coast of southern Tanzania.


More..

British could run out of gas in April

Britain has only two days’ worth of gas left in reserve as the country braces itself for another spell of wintry weather that will force up energy bills. Stocks of gas have been drained in recent weeks as households have turned up the heating because of the unseasonably cold weather, pushing demand to 20 per cent higher than normal. Last night storage facilities were only 10 per cent full, compared with 49 per cent this time last year.

Ex dividend today @10p. Down 44p atm.

I had a look at this one earlier today having let it fall off my watchlist. Surprisingly bad chart for such a huge company sitting on mega assets and poor divi yield at 1.56% (2012).