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.

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)."

Yes interims on wed (28th) - should be interesting!

From Merrill Lynch 28.10.09
BG reported 3Q09 adjusted net income of GBP 474mn, 8% above BofAMLe and the consensus.
The low charge in the current quarter reflects an adjustment for the first nine months due to revised 42% FY09 tax charge guidance (from 42.5%). At the operating level, 3Q09 adjusted operating profit of GBP856mn, 2% ahead of the consensus but in line with our GBP855mn.
At the divisional level, the operating beat was largely driven by a stronger showing in the LNG and T&D divisions. The LNG division enjoyed stronger trading profits than anticipated as the company exploited widening gas price differentials between the Atlantic basin and Asia.
On production guidance, a modest disappointment with production on Hasdrubal now set to start on 30th November, driving the miss in 3Q volumes and likely pulling our 4Q09 production down approximately 10kbbl/d. BG, in our view, remains a core holding amongst the European large-cap oils. Our positive investment thesis on the shares is predicated on its (1) Sectorleading volumes growth (7% CAGR) to 2012, driven by a quality upstream portfolio; (2) a strong global LNG position, whose competitive advantage is set to extend as new production sources (Egypt, Nigeria and Australia) come onstream and (3) an attractive cost base. With the shares trading at an 11% discount to our 1,260p/sh NAV, we see good value in the shares post recent underperformance. We reiterate our Buy recommendation.

Business Financial Newswire
"BG Group has confirmed that a new well - Tupi North-East - has been found on block BM-S-11 in the Santos Basin offshore Brazil.

Tupi North-East is located in the Tupi evaluation area in a water depth of 2115 metres, approximately 265km from Rio de Janeiro.

The well is 18 kilometres to the north-east of the Tupi discovery well (1-RJS-628 or 1-BRSA-369).

Partners Petrobras (65%, operator), BG Group (25%) and Galp (10%) drilled the well which penetrated an approximately 250 metre thick section of carbonate reservoirs.

Wireline testing confirmed the presence of light oil at approximately 28 API.

This is a further successful appraisal well which reinforces the partners' estimates that the Tupi accumulation holds 5-8 billion barrels oil equivalent of recoverable reserves.

Drilling on Tupi North-East has been concluded and drill stem tests to evaluate reservoir productivity will be conducted over the next few weeks. "

Business Financial Newswire
"BG Group has revealed record productivity from well tests on the Iracema appraisal well in the Tupi area in the Santos Basin.

BG Group (25%) and partners Petrobras (65% and operator) and GALP (10%) have completed two drill stem tests on the Iracema well in the BM-S-11 appraisal area in the Santos Basin pre-salt, offshore Brazil.

DSTs were carried out over two zones with aggregate production amounting to 10,500 barrels oil per day of light 32 API oil and 17 million standard cubic feet per day (mmscfd) of gas.

The Iracema appraisal well has confirmed the presence of an excellent quality light oil bearing reservoir, 33 kilometres north-west of the original Tupi discovery well

The well in-flow performance recorded during the tests was the highest so far achieved in BG Group's Santos Basin interests.

Ultimately, development well flow rates of up to 50,000 barrels oil equivalent per day (boepd) are anticipated.

These rates being constrained by production facilities rather than reservoir performance. "