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.

Rumours of an interest from Exxon Mobil.

I'm now in, BG is based only four miles away from where I live and over the last year or so I've had the good fortune to meet many of their staff from all over the world . I've driven some of their top guys around and can also say what a fantastic company this is, they really look after their employees. Investors Chronicle is also a big fan of BG , and the fact that their top execs have been buying shares recently must be a good sign .I'm not really an expert in the oil and gas exploration field but find it a fascinating one !

When was the last time we had BG. down 10% in a day.

Unheard of I'd thought. This is either a bottoming clear-out or the SM is on the point of collapse.

Next few days will tell us.

Sit tight, imo. Possibly worth a top up near the 800p level. (currently 873p)

Results Highlights.

Highlights
* Record earnings per share up 74% to 91.6p for the full year
* Cash generated by operations up 70% to GBP6 274 million for the full year
* Full year dividend increased by 20% to 11.23p
* 2P reserves increased by 64%; total reserves and resource base increased by 31%
to 13.1 billion boe
* LNG total operating profit up 204% to GBP1 585 million for the full year
* Queensland Gas Company resource base increased from 7 tcf to 11 tcf

BG Group's Chief Executive, Frank Chapman said:
"BG Group has delivered record results this year with strong performances in E&P
and LNG. Major reserves and resources additions were achieved, with 2P reserves
up 64%. There was transformational strategic progress in Australia and Brazil;
two ventures that will support BG Group's growth over the next two decades."

Business Financial Newswire
"BG Group has agreed an alliance with oil and gas explorer and producer EXCO Resources to develop US shale gas.

BG Group has acquired a 50% interest in 120,000 net acres in east Texas and north Louisiana.

Of these, 84 000 net acres cover the Haynesville shale gas formation, a substantial proportion of which lies within the prolific Harrison County, Texas and DeSoto and Caddo Parishes, Louisiana.

EXCO has completed eight horizontal wells in DeSoto Parish with an average initial production rate in excess of 23 million standard cubic feet per day (mmscfd).

A consideration of US$1,055m equates to approximately US$0.40 per thousand standard cubic feet (mscf).

This comprises US$655m on completion plus US$400m to be paid as a carry of 75% of EXCO's future costs to develop the Haynesville shale gas.

BG has also agreed to negotiate to acquire a 50% interest in related and complementary EXCO gas-gathering and transportation assets for US$249m. "

Half yearly report

BG Group completes acquisition of interest in US shale gas alliance

"BG Group has announced the closing of the upstream and midstream acquisitions as part of the previously announced alliance with EXCO Resources Inc. (NYSE:XCO).

After closing adjustments to make the economic effective date of the upstream acquisition and joint development operations 1 January 2009, consideration for the upstream portion of the alliance is US$1 127.0m. This consists of US$727.0m plus US$400m to be paid as a carry of 75% of EXCO's future costs to develop the Haynesville shale gas. Following similar closing adjustments, the consideration paid for the midstream portion of the alliance is US$269.2m.

Under the terms of the alliance, BG Group has:
Acquired 50% interest in 120 000 net acres in EXCO's upstream leases in a defined area of East Texas and North Louisiana, which encompasses the Haynesville shale, the prospective Bossier shale and the Cotton Valley tight gas sands formations;

Added 2.6 trillion standard cubic feet (tcf) to BG Group's net potential resources, with current net production of 90 million standard cubic feet per day (mmscfd), anticipated to increase to some 250 mmscfd in 2012, net to BG Group;

Acquired a 50% interest in a newly formed company that will hold related and complementary EXCO gas-gathering and transportation assets and entered into agreements to support the joint development and growth of these assets; and

Entered into a joint development agreement with EXCO to co-operate in the development and production of onshore shale and tight gas resources across 14 counties and parishes in East Texas and North Louisiana.

Both the midstream and upstream transaction were granted regulatory approval by the Federal Trade Commission on 17 July. "

To me this is looking undervalued when compared to others...good production and a massive discovery in Brazil which will be coming online in a couple of years...I would have put a 13 or 14 pound tag on this...and yet, just will not climb....

what's in it for shareholders the dividend is pathetic compared to BP and Shell, only hope is a bid, pricey compared to other majors.

The dividend is not good but I bet they will increase it soon....but the production and profits to come are going to increase by a lot.

rf lets hope so but as will those of BP and Shell.

"BG Group today announced the completion of an exchange of equity interests in certain North Sea production assets with subsidiaries of BP plc (LSE: BP.L).

With effect from midnight 31 August, 2009, BG Group acquired BP's entire equity in the Everest, Lomond and Armada fields and part of BP's equity in the Erskine field, operated by Chevron (NYSE: CVX). In return, BG Group transferred all of its equity interests in all fields in the Southern North Sea to BP.

BG Group also became operator of the Everest and Lomond fields, with effect from midnight 31 August, 2009. It will continue to operate the Armada field.

BG Group's Executive Vice President and Managing Director, Europe and Central Asia, Mark Carne said: 'BG Group believes that significant potential remains in the UK Continental Shelf. While it is a mature basin, it is still a highly promising area and we remain one of the most active players. This agreement demonstrates our commitment to the UKCS. It consolidates and strengthens our UK interests in this region and will allow the production efficiency of mature fields to be increased and smaller fields to be developed more economically."

Ok , what's happening ? Nearly 12million trades. I was back in yesterday after a long absence -just by chance. Any ideas ?

Good flow rates from BG. today...this in a few years time will make them a fortune...

"Oil and gas explorer BG Group said the test results on its 30% owned Guara discovery in the Santos Basin off the coast of Brazil were excellent.

The discovery, jointly owned with the operator Petrobras, which holds a 45% stake, and Repsol (25%), is estimated to contain recoverable volumes of 1.1bn to 2.0bn barrels of oil equivalent.

Test data suggests that a permanent production well would be capable of producing initial rates of up to 50 000 barrels of oil equivalent per day (boepd).

BG and its partners expect the well to go into full production in 2012.

'Partners are fully aligned on continuing work to accelerate the full appraisal and development of these resources, with activities ongoing and planned at Tupi, Abare-West, Corcovado, Iracema, Iara, Carioca and Parati, said BG Group chief executive Frank Chapman.

It is clear that the Santos Basin pre-salt will make a very material contribution to the production and cash flow of BG Group for many years to come,' Chapman added."

New discovery: Abare West in the pre-salt, Santos Basin, Brazil

BG Group (30%) and partners Petrobras (45%, operator) and Repsol (25%) today announced another new discovery in the Santos Basin pre-salt BM-S-9 concession area, offshore Brazil.

The well, 4-SPS-66C (4-BRSA-732C) known as Abare West, proved the presence of an accumulation of oil and natural gas in a separate structure within the 1-SPS-50 evaluation plan area on BM-S-9. The evaluation plan area also encompasses the separate Iguacu (4-BRSA-709 (4-SPS-60), announced April 2009) and Carioca discoveries (1-BRSA-491-SPS (1-SPS-50), announced September 2007). Abare West is approximately 30 kilometres from the Iguacu discovery and 40 km from the Carioca discovery and 50 km to the west of the Guara discovery (1-BRSA-494-SPS), also in the BM-S-9 concession, announced June 2008.

Abare West is in 2163 metres of water, approximately 290 km off the coast of Sao Paulo State and encountered a hydrocarbon column containing oil, gas and carbon dioxide in pre-salt reservoir sections. The well will be fully analysed and the forward plan for this discovery will be incorporated into the evaluation plan for this accumulation approved by ANP.

BG Group Chief Executive Frank Chapman said: 'Abare West further extends an outstanding sequence for BG Group and partners operating in the Santos Basin, with eight discoveries in three years.'

Shame this isn't a smaller mid-cap because the sp would go through the roof on discoveries like this....

Buyer lines up for BGs power arm

The week ahead (Digitallook):
"Oil and gas firm BG Group is also set to see third quarter post-tax profits fall, probably to around 450m, compared to 777m a year earlier. The company conceded at the half-year stage that there is a possibility it could fail to meet its full year production targets, so analysts will be keen to study third quarter output levels (28/10/09)."