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 has received a further payment equivalent to US$350m from the Egyptian government following its commitment to repay outstanding debts to the energy industry.

This reduces the company's domestic receivables balance in Egypt to around US$920m.

While the Group has been affected by the reduction of LNG exports from Egypt, the company continues to investigate options for increasing the supply of gas and is working with the government on resolving the outstanding receivable balance.

FOURTH QUARTER & FULL YEAR RESULTS

Full year key points

· E&P production within guidance at 606 kboed; LNG total operating profit ahead of guidance at $2 544 million; both 4% lower than 2013

· First LNG from QCLNG Train 1; five FPSOs onstream in Brazil, net production above 125 kboed in January

· Signed agreements for non-core asset disposals totalling $6.6 billion ($1.1 billion completed in 2014)

· Business Performance earnings $4 035 million, down 8%

· Total earnings down to $(1 051) million, reflecting non-cash post-tax impairments of $5 928 million

· Business Performance EPS down 8% to 118.4 cents; Total EPS down to (30.8) cents

· Full year dividend held flat at 28.75 cents per share (17.99 pence per share)

· 2015 E&P production 650 - 690 kboed; 2015 LNG S&M segment total operating profit $0.7 - 1.0 billion

· 2015 capital investment on a cash basis $6 - 7 billion

StockMarketWire.com
BG Group has confirmed that the Petrojarl Knarr floating production, storage and offloading vessel has started production from the Knarr oil field in the North Sea, offshore Norway.

he FPSO has been leased from Teekay Corporation (NYSE: TK) and is moored approximately 120 kilometres off the Norwegian coast. It has a production capacity of 63 000 barrels of oil equivalent per day and a storage capacity of 800 000 barrels.

The Knarr field, discovered in 2008, has estimated gross recoverable reserves of around 80 million barrels of oil equivalent with a production life of at least ten years. In 2011 the Knarr field was merged with the Knarr West field into an integrated development. New exploration drilling in the licence area is ongoing, in order to help extend the production life further.

BG Group is the operator of the field with a 45% working interest. Partners include Idemitsu Petroleum Norge (25%), Wintershall Norge (20%) and DEA Norge AS (10%).

Shell 'in advanced discussions' to buy BG Group

BG Group has confirmed that it is "in advanced discussions" with energy giant Shell over a possible merger, in what could be one of the biggest deals of 2015.
The mega-merger could produce a company with a combined market capitalisation of more than £200bn ($296bn; €274bn).

BG Group confirmed the news, first reported in the Wall Street Journal, but a Shell spokesman told the BBC: "We're not making any comment."
Shell has until 5 May to make an offer.

But BG added: "There can be no certainty that any offer will ultimately be made for BG."

RECOMMENDED CASH AND SHARE OFFER FOR BG GRROUP PLC

Summary

The Boards of Shell and BG are pleased to announce that they have reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG.

· Under the terms of the Combination, BG Shareholders will be entitled to receive:

For each BG Share: 383 pence in cash; and

0.4454 Shell B Shares[1]

· Based on the 90 trading day volume weighted average price of 2,170.3 pence per Shell B Share on 7 April 2015 (being the last Business Day before the date of this Announcement), the terms of the Combination represent:

- a value of approximately 1,350 pence per BG Share; and

- a premium of approximately 52% to the 90 trading day volume weighted average price of 890.4 pence per BG Share on 7 April 2015.

· Based on the Closing Price of 2,208.5 pence per Shell B Share on 7 April 2015 (being the last Business Day before the date of this Announcement), the terms of the Combination represent:

- a value of approximately 1,367 pence per BG Share;

- a premium of approximately 50% to the Closing Price of 910.4 pence per BG Share on 7 April 2015; and

- a value of approximately £47.0 billion for BG's entire issued and to be issued share capital.

· The Combination will result in BG Shareholders owning approximately 19% of the Combined Group.

· Shell expects the Combination to accelerate its growth strategy in global LNG and deep water.

· The Combination will add some 25% to Shell's proved oil and gas reserves[2] and 20% to production, each on a 2014 basis, and provide Shell with enhanced positions in competitive new oil and gas projects, particularly in Australia LNG and Brazil deep water.

· The Combination has the potential to unlock further value for both sets of shareholders from the combined portfolio. An enhanced set of upstream positions will be a springboard to high-grade the Combined Group's longer term portfolio, increase asset sales and reduce capital investment, thereby enhancing the Combined Group's capacity to pay dividends and undertake share buybacks.

· Shell expects the Combination to generate pre‑tax synergies of approximately $2.5 billion per annum (which have been reported on) and has also identified further significant opportunities.

· In the near term, BG Shareholders will benefit from the dividends enjoyed by Shell Shareholders.[3] Shell today confirms its intention to pay dividends of $1.88 per ordinary share in 2015 and at least that amount in 2016.

· In the medium term, all shareholders will benefit from the potential for enhanced cash flow and a continued drive to grow returns and enhance capital efficiency from the combined portfolio.

· Shell expects to commence a share buyback programme in 2017 of at least $25 billion for the period 2017 to 2020.[4] Shell expects this programme to offset the shares issued under the Shell scrip dividend programme and to significantly reduce the equity issued in connection with the Combination.

more....

phew! at least my holding here has turned from red to black

but leaving that aside, the 1 year chart below shows just what an awful time the oilies have been having - eg BG dropping about 1/3

of course, the kneejerk knock-on effect across the whole of this sector will be massive and it won't do ftse any harm either
the skill will be to determine which small/medium oilies are indeed genuine targets - eg have real assets - and are even worth holding on fundies ..... of course i'll plump for PMO and TLW and mentor will prob add OPHR to that

Cynic: Glad it turned out positive in the end for you, perhaps this might be the start of a rerating for some other oil/gas majors.

it's not the majors that will be interesting, but the second tier companies

A bit unfortunate in their timing!

Liberum Capital Hold 1,255.25 910.40 886.00 886.00 Reiterates

Skinny; Well at least they didn't say sell at 886P

This is true!

StockMarketWire.com
Canaccord Genuity has downgraded its recommendation on BG Group (LON:BG.) to 'hold' from 'buy' after Royal Dutch Shell (LON:RDSB) confirmed that has reached agreement on the terms of a recommended cash and share offer to acquire the entire issued share capital of BG.

The broker has upped its target price to 1,300 pence a share (from 1,016 pence), which it pointed out only leaves around 3 per cent potential upside.

"If we run the RDS assumptions then our de-risked value would rise to 1499p/sh," analysts added.

"So, RDS does not look like it is overpaying if you assume US$90/bbl long term. Strategically, RDS sees LNG and deepwater projects as its key growth areas. BG is LNG and Brazil deepwater.

"We calculate the combined entity will be EPS accretive from 2017 and CFPS accretive from 2016."

the price has now slipped to about 1180 so shall watch and then buy a few more, for there looks to be an easy 10% to be made in a pretty short time and it's almost underwritten

============

bought perhaps marginally prematurely at 1173.50

StockMarketWire.com
BG Group has started up and loaded its first LNG from the second production train at the Queensland Curtis LNG (QCLNG) facility in Australia. The first LNG from Train 2 set sail on the Maran Gas Posidonia.

At plateau production, expected mid-2016, both trains at QCLNG will be producing enough LNG to load ten vessels per month combined, exporting around eight million tonnes per year. Since production from the first train commenced in December 2014, 27 cargoes have been shipped.

BG Group began commercial operations in May 2015, when control of Train 1 formally transferred to QGC, BG Group's Australian subsidiary, from the constructor Bechtel Australia. Train 2 commercial operations will begin once a similar commissioning process has been completed.

Chief executive Helge Lund said: "The start-up of QCLNG's second LNG train is another important operational milestone delivered in line with our plan. The completion of our upstream infrastructure and the two LNG trains are achievements of which BG Group, particularly our team in Australia, can be proud. We have already shipped more than 1.5 million tonnes of LNG from Queensland, and Train 2 will add significant further volumes and flexibility to our LNG shipping and marketing portfolio."

British Gas to cut gas prices by 5%

StockMarketWire.com
BG Group has confirmed that the recommended cash and share offer for the company to be made by Royal Dutch Shell has received unconditional merger clearance from the Brazilian competition authority (CADE). The unconditional clearance follows CADE's initial approval of the combination on 8 July 2015, and the expiry of the 15 day period during which CADE's decision could be appealed.

The approval is one of the five regulatory clearances that are pre-conditions to the combination and this is the first precondition to be satisfied. Other pre-conditional approvals are required from Australia (anti-trust and foreign investment), China (anti-trust) and the European Union (anti-trust).

StockMarketWire.com
BG Group's first half earnings before interest and tax fell by 60% to $1m572m but the interim dividend is maintained at 14.38c per share.

Earnings before interest, tax, depreciation and amortisation fell by 45% to $2,963m.

Second quarter highlights:
· E&P production up 19% at 703 kboed; full year guidance moved to the upper half of 650 - 690 kboed range

· Australia and Brazil average E&P production more than doubled to 80 kboed and 143 kboed, respectively

· QCLNG pipeline disposal completed with gross proceeds of $4.6 billion; Train 2 start-up in July

· Upstream EBITDA down 39% to $1 138 million; lower commodity prices partially offset by higher volumes

· LNG Shipping & Marketing EBITDA down 66% to $263 million; lower margins partially offset by higher volumes

· Business Performance EPS down 65% to 12.6 cents; Total EPS up 63% to 65.2 cents, reflecting profit on disposal of QCLNG pipeline

Chief executive Helge Lund said: "We achieved a number of key milestones during the quarter while continuing to deliver on our cost and efficiency programmes. Production reached record levels, more than doubling in both Australia and Brazil, and we now expect output for the year to be in the upper half of our forecast range. In Australia, we assumed operational control of the first train at QCLNG, which is now operating at plateau, and produced first LNG from the second train earlier this month. In Brazil, our share of production is now exceeding 150 kboed and the sixth FPSO was recently moored on location. Our LNG business has again produced a robust operating performance to deliver 58 cargoes in the quarter.

"This performance reflects our actions to stabilise and de-risk the business and our teams remain focused on delivering our 2015 commitments."

StockMarketWire.com
BG Group's earnings before interest, tax, depreciation and amortisation fell by 37% to $1,244m in the third quarter.

Total results for the period (including disposals, re-measurements and impairments) show earnings before interest and tax down by 84% at $374m.

Key points:
· E&P production up 26% at 716 kboed; full year guidance increased to 680-700 kboed

· 45 cargoes delivered from QCLNG in the nine months to end September; Train 2 commissioning in progress

· FPSO 6 onstream; Brazil net production reached 175 kboed in October

· Upstream EBITDA down 22% to $1 087 million; lower commodity prices partially offset by higher volumes, increased oil in mix and higher liquefaction contribution

· LNG Shipping & Marketing EBITDA down 65% to $213 million; higher volumes more than offset by lower sales prices

· Business Performance EPS down 63% to 8.2 cents; Total EPS down to (3.0) cents due to non-cash foreign exchange impacts on tax balances

· Unconditional anti-trust approval for Shell offer received from European Commission; two of the five pre-conditions now satisfied

Chief executive Helge Lund said: "Our teams delivered another strong operational performance in the third quarter. In our Upstream business, we maintained positive momentum in our growth projects in Australia and Brazil, and we continued to improve reliability and efficiency in our base assets. We are now increasing our full year guidance for production to 680-700 kboed. Our LNG operations had a robust operating performance, despite challenging market conditions, and we have maintained our EBITDA guidance for 2015.

"We are on track to deliver our promised operating and capital cost savings for 2015 and are adding new low cash cost volumes through Australia and Brazil. These actions will help mitigate the impact of lower commodity prices on our financial results.

"We continue to work with Shell on integration planning and to secure the necessary regulatory approvals ahead of the shareholder vote. The transaction remains on track to complete in early 2016."

Chinese competition authority approval of Shell offer


BG Group plc ("BG Group" or "the Company") today confirms the receipt of unconditional merger clearance from the Chinese Ministry of Commerce ("MOFCOM") of the recommended cash and share offer for the Company to be made by Royal Dutch Shell plc ("Shell").

This approval from China is the final regulatory clearance that is a pre-condition to the Combination. Other pre-conditional clearances have already been received from the authorities in Australia, Brazil and the European Union.

BG Group's Chief Executive, Helge Lund said: "Following today's approval from MOFCOM, all pre-conditional regulatory approvals for the combination have been received and we now move to the next phase. I am pleased that we have continued to deliver a strong operating and safety performance throughout the offer period which is a credit to our teams across the business. The proposed combination has strong industrial logic, particularly in deep water production and LNG, and will accelerate the delivery of value to our shareholders."

The proposed combination will require support from both BG Group and Shell shareholders and BG Group shareholders should now await further communications from their board.

The pre-conditions and conditions to the Combination are set out in the announcement of the proposed offer released on 8 April 2015 (the "Announcement").

StockMarketWire.com
BG Group's full year results were hit by lower commodity prices with upstream EBITDA down 35% at $4,167m and LNG EBITDA down 46% at $1,456m.

Revenue and other operating income decreased 16% to $16 419 million, reflecting the significant fall in realised sales prices impacting both the Upstream and LNG Shipping & Marketing segments. The impact of lower prices was partly offset by higher volumes in both segments, the start-up of liquefaction operations at QCLNG and weather-related gains in North America in the LNG Shipping & Marketing segment. E&P production volumes were up 16% and LNG delivered volumes were up 63%. EBIT decreased by $3 948 million to $2 429 million, reflecting the reduction in EBITDA combined with increased DD&A charges, which resulted from higher E&P production volumes and the start-up of QCLNG.

Net finance costs of $260 million included foreign exchange gains of $nil (2014 net finance costs of $109 million included realised foreign exchange hedge gains of $28 million and other foreign exchange gains of $21 million). Excluding the impact of foreign exchange, net finance costs increased by $102 million to $260 million, reflecting the reduction in the amount of interest on borrowings that can be capitalised against assets under construction following the start-up of QCLNG.

The tax charge for the full year reduced to $472 million and reflects the lower profit before tax and the reduction in the Group's full year effective tax rate (excluding BG Group's share of joint ventures and associates' results and tax) to 24.0% (2014 36.9%), and includes the impact of further changes in the Group's mix of profits and revisions to certain tax positions.

Group earnings of $1 697 million and EPS of 49.7 cents both decreased 58%, with the reduction in EBIT and higher net finance costs only partially offset by the reduction in the Group's tax charge.

Chief executive Helge Lund said: "We are pleased to have delivered an excellent operational performance in 2015 with results in line with, or ahead of, our guidance for the year. The ramp up of both LNG trains at our QCLNG project in Australia and the ramp up in Brazil, including the start-up of our sixth FPSO, drove a strong E&P operational performance. Our LNG Shipping & Marketing business delivered 282 cargoes, an increase of 58% on 2014, in difficult market conditions.

"The addition of new low cash cost volumes in Brazil and Australia and delivery of our operating and capital cost savings has helped to partly mitigate the impact of lower commodity prices.

"This strong operational performance is the result of the capability and commitment of our teams across the organisation and we will deliver a high-performing business into the Combination with Shell."