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.

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).

Harry, latest broker (today) :-

Citigroup Buy 1,035.75 1,079.00 1,380.00 1,380.00 Reiterate


I may be tempted @£10 - 12 month low is 991.

Am going to cash in my fixed rate Cash ISA when it expires on 1st May as the savings companies are offering about 2% for 1 yr and 3% for 5 yrs. Hopeless rates and I reckon I can do much better by putting some of it into my Stock ISA, so having a look at all FTSE 100 Co's to find a good yield and some capital growth. I quite like BG. as a company, but doesn't fit my criteria sadly.

Harry - I've mentioned some of these before, no harm in having a look.

MGHI,MGHU,RECI,RECP,PEW,GACA,SMP1,GLIF - and one I'm looking at:-

ECWO

This is a very good Buy and it will recover.

BG Group completes successful Mzia well test

BG Group today announced it had completed another successful drill stem test in Block 1 offshore Tanzania, with initial results from the Mzia-2 well showing better than expected properties in the deeper Cretaceous reservoir.

The test on Mzia-2, the first done on a Cretaceous discovery in deep water off Tanzania, flowed at a maximum rate of 57 million standard cubic feet of natural gas per day, constrained by testing equipment.

Mzia-2 is four kilometres from the Mzia-1 discovery, in around 1620 metres of water and approximately 45 kilometres off the coast of southern Tanzania. It is approximately 22 kilometres to the north of the Jodari-1 discovery well, also in Block 1, where a successful drill stem test was completed in March on the shallower Tertiary reservoir.

BG Group Chief Executive Chris Finlayson said: "The successful Mzia-2 drill stem test follows completion of a multi-well appraisal programme earlier this year on the nearby Jodari field. Results from the current campaign demonstrate the excellent quality of our interests offshore Tanzania, where our resources, and those of other participants in the region, are helping support plans for a multi-train LNG export project.

"While we continue exploration and appraisal offshore, BG Group and others are jointly studying suitable sites for a potential onshore LNG terminal and anticipate providing proposed locations to the Tanzania Government in the next few months," Mr Finlayson said.

The drillship Deepsea Metro-1 has now relocated to Block 4 to drill an exploration well, Ngisi-1, adjacent to the Pweza and Chewa discoveries.

BG Group will use data from the current exploration and appraisal campaign and a recently completed 3-D seismic survey to help identify new offshore targets for a third exploration programme beginning in late 2013.

Prior to Mzia-2, BG Group's acreage offshore Tanzania had produced seven consecutive natural gas discoveries, two successful appraisal wells and a successful test on the Jodari field.

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 40%.

-ends-

1st Quarter Results

First Quarter Key Points

· Earnings down 3% to $1.2 billion

· Production down 3%; LNG segment total operating profit up 3%; both in line with guidance

· Cash flow from operations up 3% to $2.7 billion; gearing at 23.5%

· Q1 project milestones delivered: Sapinhoá and Everest East start-ups; Elgin/Franklin re-start

· De-risking future milestones: FPSO 3 on location at Lula NE; all Jasmine modules installed

· QCLNG remains on track: critical Narrows Crossing pipe-pull safely completed

· FPSO 2 onstream in Brazil bringing total gross production to around 140 000 boed

· Successful appraisal results in Tanzania: very good results from Jodari and Mzia drill stem tests

· Completion of long-term sales agreement for up to 2.5 mtpa of LNG to India

Deutsche Bank Buy 1,226.75 1,227.00 1,400.00 1,400.00 Retains

Overweight 1,226.75 1,227.00 1,110.00 1,400.00 Upgrades

Investec reiterated a ‘sell’ rating for BG Group’s stock after the oil and gas company reported a drop in operating profit for the half year.

Total operating profit declined 5.0% to $3.9bn as revenue and other operating income slide 3.0% to $9.2bn.

Earnings for the half year slipped 3.0% to $2.1bn, or $0.63 per share.

The group blamed fewer liquefied natural gas (LNG) cargo deliveries, a fall in exploration and production volumes and lower realised oil and liquids prices.

Production volumes were down 3.0% to 119.1m barrels of oil equivalent in the six months, while LNG delivered volumes fell 11% to 5.4m tonnes.

Looking ahead, the company noted operating and depreciation costs in the Upstream segment are expected to be around $0.505 per barrels of oil equivalent higher for full-year 2013 than originally forecast.

3rd Quarter Results

Third Quarter Key Points


· Earnings down 4% to $1.1 billion; total operating profit 15% lower at $1.8 billion

· Production down 10%; reduced activity in the US, declines in Egypt and planned shutdowns

· Further progress with 2013 milestones; Margarita Phase 2 and Bongkot North Phase 3K now onstream

· QCLNG entering commissioning phase; entire export pipeline in the ground with testing underway

· Excellent flow rates from FPSOs 1, 2 and 3 in Brazil; gross production around 160 000 boed

· Good progress with portfolio management; agreed sale of US midstream assets, Quintero LNG disposal

· Egyptian domestic offtake higher in Q3; business environment remains difficult

Declaration of Commerciality for the Carioca area, offshore Brazil
BG Group today confirms that its partner, Petróleo Brasileiro S.A. (Petrobras) - the operator of block BM-S-9 in the pre-salt Santos Basin - has submitted a Declaration of Commerciality (DoC) to the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), for the oil and gas accumulations in the Carioca area, offshore Brazil.

As part of the DoC, the consortium has suggested that the new field be named Lapa.

The Lapa field is located approximately 270 kilometres off the coast of São Paulo state, in water depths of around 2 140 metres. The DoC notification to the ANP also includes the operator's estimates of total recoverable volumes associated with the initial stage of development.

BG Group is working with the consortium partners to achieve further optimisation of the development plan following encouraging results from the recent Carioca SW appraisal well drilled in October 2013.

The DoC submission was accompanied by the Final Report of the Discovery Assessment Plan following an exploration and appraisal programme which began in 2007 and consisted of acquiring 3D seismic, drilling five wells as well as performing three formations tests and an extended well test.

The Development Plan for the Lapa field will be submitted for ANP approval within the next 180 days.

BG Group has a 30% interest in the BM-S-9 concession, offshore Brazil (Petrobras, operator 45%, Repsol Sinopec Brasil 25%).

Minor Gold cross albeit on low volume.