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.

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.

BG. Looks like an interesting short to med term trading opportunity arising here. Anyone for 1350p in the rising trend channel. This coincides with last years resistance.

BG Group - Declares Force Majeure in Egypt; gives 2013 results expectations and 2014 outlook*

BG Group has today issued Force Majeure notices under its LNG agreements in Egypt reflecting the ongoing diversions of gas volumes to the domestic market in excess of the existing pooling arrangements.

The Group will publish its preliminary 2013 fourth quarter and full year results on 4 February 2014. Currently the Group expects to report:

· 2013 production volumes of around 633 thousand barrels of oil equivalent per day (kboed), in line with guidance
· LNG Shipping & Marketing total operating profit of approximately $2.6 billion, in line with guidance
· Business performance** earnings flat at approximately $4.4 billion (around 130 cents per share)
· Non-cash, post-tax impairments of approximately $2.4 billion associated with Egypt (around
$1.3 billion) and the US (around $1.1 billion)
· Total results earnings (post impairments) of approximately $2.2 billion (around 65 cents per share)

The Group also today updates on its outlook for 2014:

· 2014 production volumes expected in the range of 590 - 630 kboed
· 2014 E&P unit operating costs expected to be $15.50 - 16.25 per boe
· 2014 E&P unit depreciation costs expected to be $12.25 - 13.00 per boe
· 2014 LNG Shipping & Marketing total operating profit expected in the range of $2.1 - 2.4 billion

For 2015, BG Group expects production volumes to be in the range of 710 - 750 kboed excluding portfolio changes, and continues to expect to be free cash flow positive*** in 2015 at the Group's reference conditions.

UBS comment:
"BG expects 2013 production at 633kboed, in line with the guidance at 630 660kboed and UBSe 633kboed. LNG earnings will come at $2.6bn, at the mid-point of the guidance and vs. UBSe $2.572bn. Recurring net income will amount to $4.4bn (UBSe $4.3bn), but big impairments will be taken against Egypt ($1.3bn) and the US ($1.1bn). Tax rate is expected to average 41% (UBSe 42%).
2014 production is guided to 590-630kboed (UBSe 670kboed); LNG earnings to $2.1- $2.4bn (UBSe $2.69bn). Average unit costs are also expected to be higher, primarily on start up unit costs related to Brazil and Australia, with opex at $15.50-$16.25/bbl vs. UBSe $12.78/boe and DD&A $12.25-$13/boe vs. UBSe $11.46/boe. 2015 production guidance of 710-750kboed is a 9% downgrade on the mid-point vs. previous expectations (UBSe 776kboed). 2015 LNG earnings are expected to be similar to 2014 (UBSe $2.9bn). Effective tax rate should remain around 41%. BG still sees itself FCFpositive starting from 2015, which is a compensation but potentially capex related.
The Force Majeure declared in Egypt reflects the ongoing diversion of gas volumes to the domestic market in excess of the existing pooling arrangements (currently close to capacity of 1Bcfd). The US impairment stems from lower forward gas prices and hence continued low rig count. 2014 is also impacted by delays in Brazil plus maintenance in the north Sea and PSC effects in Trinidad and Tobago. The announcement is disappointing and affecting management credibility and the BG investment case."

Beaufort Securities Buy 1,085.00 - - Retains

Citigroup Buy 1,085.00 1,510.00 1,400.00 Reiterates

JP Morgan Cazenove Neutral 1,085.00 1,550.00 1,300.00 Downgrades

Nomura Buy 1,085.00 1,450.00 1,350.00 Reiterates

Credit Suisse Neutral 1,085.00 1,200.00 1,115.00 Upgrades

Deutsche Bank Buy 1,085.00 1,400.00 1,250.00 Reiterates

Goldman Sachs Conviction Buy 1,078.00 1,082.00 - 1,580.00 Reiterates

Barclays Capital Equal weight 1,078.00 1,082.00 - 1,370.00 Reiterates

HSBC Overweight 1,079.50 1,082.00 1,425.00 1,325.00 Reiterates

Can't make up my mind whether to buy any at this level. Historically the sp seems to regularly fall off a cliff and then slowly build back up again. Shame the divi yield isn't that great.

I've had a dabble @1075 £10 has been support on several occasions.

Investec Sell 1,079.75 1,082.00 1,100.00 1,000.00 Retains

Societe Generale Hold 1,079.75 1,082.00 1,400.00 1,200.00 Retains