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.

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. "

"BG Group (25%) and partners Petrobras (65% and operator) and Galp (10%) have announced the conclusion of the formation test on the Iara well (1-BRSA-618-RJS or 1-RJS-656) in the BM-S-11 appraisal area in the Santos Basin pre-salt, offshore Brazil.

The tests proved the exploration potential of the area by producing light 28 API oil and confirmed the estimated recoverable volumes for Iara to be in the order of 3 to 4 billion barrels of light oil and natural gas, as announced in September 2008.

The well tested is located in water depth of 2230 metres and approximately 230 kilometres from the coast of Rio de Janeiro State. Due to the need to relocate the rig, the test on the well was not fully completed and another well is planned to be drilled in this area in 2010.

The consortia formed by Petrobras, BG Group and Galp will continue with the exploration activities and investment required for the appraisal of the Iara field in accordance with the Evaluation Plan approved by the Brazilian National Petroleum Agency (ANP)."

Interim results being reported 5th Feb '10.

11.01.10 "BG Group target price raised to 1500p from 1300p at Citigroup, stays at buy"

Business Financial Newswire
"BG Group said production volumes were up 4% for the full-year. Lower gas and oil prices resulted in an 18% fall in revenue and other operating income. Earnings per share were 67.3p and the full-year dividend was increased by 10% to 12.35p.

LNG showed a total operating profit of 1.55bn

The group reported strong cash flow from operations of 4.9bn and total reserves and resources up by 10% to 14.5bn.

Lower gas and oil prices resulted in an 18% fall in revenue and other operating income.

Despite a 37% drop in Brent oil prices and a 53% fall in Henry Hub gas prices, total operating profit was 21% lower as these price declines were partially offset by a 4% increase in E&P production volumes, a strong performance from the LNG segment, the recovery of past gas costs at Comg and the effect of a stronger US Dollar.

Net finance costs were 144m and included foreign exchange gains of 25m.

The Group's effective tax rate (including BG Group's share of joint ventures and associates tax) was 42% (2008 42.5%) for the full year.

Cash generated by operations was 4.895bn (2008 6.274bn). As at end-December 2009, net debt was 2.956bn and the gearing ratio of the Group was 17%.

In the fourth quarter, weaker prices caused a decline in revenue and other operating income of 10%. The fall in prices was partially offset by the positive effects of 8% growth in E&P production volumes and the recovery of past gas costs at Comg, in Brazil, resulting in a 3% fall in total operating profit to 1.108bn.

Cash generated by operations was 1.329bn (2008: 1.922bn). Net finance costs for the quarter were 36m.

Capital investment in the quarter was 1.093bn reflecting continuing investment in E&P (724m), LNG (172m), T&D (49m) and Power (148m). "

23 March 2010
BG Group agrees to sell US Power Assets

"BG Group today announced that it has signed a Sale and Purchase Agreement with Energy Capital Partners for the sale of all of its power plants in the USA for a total consideration of US$450 million.

The power plants to be sold under this agreement are:

Dighton power plant (168 MW) located in Dighton, Massachusetts;

Lake Road power plant (812 MW) located in Killingly, Connecticut; and

Masspower power plant (264 MW) located in Indian Orchard, Massachusetts.

Closing of the transaction is subject to receiving the customary Federal and State regulatory approvals. The transaction is expected to complete in second quarter 2010."

24 March 2010
"BG Group confirms high productivity from well tests on Tupi North-East in the Santos Basin, Brazil

BG Group (25%) and partners, Petrobras (65% and operator) and GALP (10%), have completed a drill stem test (DST) on the Tupi North-East well (3-BRSA-755A-RJS or 3-RJS-622A) in the BM-S-11 appraisal area in the Santos Basin pre-salt, offshore Brazil.

The DST carried out confirmed high productivity of some 5 000 barrels oil per day (bopd) of light oil (28 API). Flow rates were constrained by the test facility capacity. Potential production from the well is estimated at around 30 000 bopd.

The Tupi North-East appraisal well has confirmed the widespread presence of an excellent quality, light oil bearing reservoir with high production capacity across the Tupi field. These appraisal results are in line with the previous excellent well test productivity recorded in the Tupi Sul well1 confirmed by a subsequent extended well test during the last 12 months.

The Tupi North-East DST result builds upon the confirmation of record productivity from DSTs on the Iracema well in the same concession area 30 kilometres north-west of the Tupi North-East well, and previously announced in November 2009".

BG Group agrees record $40bn deal to export coal-seam gas to China

BG Group, the oil and gas producer, is poised to sign a contract worth an estimated $40 billion a record for the company to supply natural gas to China.

"BG Group (25%) and partners, Petrobras (65% and operator) and GALP (10%), have successfully completed drilling a Tupi field appraisal well (3-RJS-666) in the BM-S-11 licence area, Santos Basin pre-salt, offshore Brazil.

The step-out appraisal well, designed to test the outer limits of the expected reservoir in the Tupi field, has confirmed the presence of hydrocarbons. Results of this and other wells previously drilled confirm Tupi's estimated recoverable resource to be 5 to 8 billion barrels of light oil and natural gas.

Further evaluation of the well data is ongoing and work on optimising field development options continues to move ahead rapidly. BG Group and its partners will continue with the activities and investments foreseen in the Evaluation Plan approved by the Brazilian National Petroleum Agency (ANP), including the drilling of further wells in the area. Oil and gas production from the first module of the Tupi development is expected by the end of 2010.

Drilling on Tupi appraisal well (3-RJS-666), in the BM-S-11 appraisal area, commenced in January 2010. The well is situated 12.5 kilometres north of the original Tupi discovery well (1-RJS-628A or 1-BRSA-369A) in 2 115 metres of water, approximately 265 kilometres from the Rio de Janeiro coastline."

1st quarter results.

Earnings per share of 33.2 cents, up 13%

QCLNG Engineering, Procurement and Construction contracts signed

Contract signed with CNOOC for 20-year sale of 3.6 mtpa of LNG from QCLNG

Heads of agreement with Tokyo Gas for 20-year sale of 1.2 mtpa of LNG from QCLNG

Further development progress and successful appraisal results on Tupi, Santos Basin, Brazil

Acquisition of further US shale gas interests

Disposal of US power plants and BG Group's interest in Seabank in the UK

Hi

what does anybody know about enquest,? which was part of petrofac, looks interesting,

mase1

Business Financial Newswire
"BG Group has entered into further joint venture arrangements with its US shale partner, EXCO Resources.

BG Group will acquire a 50% interest in companies that hold EXCO's producing and non-producing assets in the Appalachian Basin, located primarily in Pennsylvania and West Virginia.

BG Group will acquire a 50% interest in a total of 654 000 net acres in the Appalachian Basin; increase its estimated net gas resources by 2.4 trillion standard cubic feet (tcf) and pay a total consideration of $950m equating to an estimated unit resource cost of $0.40 per thousand cubic feet (mcf).

BG Group and EXCO will establish a 50-50 joint venture company to operate the upstream assets and a 50-50 midstream joint venture company to invest in gathering and transportation, both to be based in Pittsburgh.

The management board of the operator joint venture company will be made up of an equal number of executives from BG Group and from EXCO. BG Group will also acquire approximately 5900 shallow producing wells owned and operated by EXCO, many of which secure ongoing ownership of deeper Marcellus rights.

These shallow assets are currently producing 35 million standard cubic feet per day (mmcfd).

Under the joint venture agreement, BG Group and EXCO will each have the right to participate in further acreage acquired by either party in the Appalachian Basin. "

StockMarketWire.com
BG Group downgraded to neutral from buy at Goldman Sachs
"BG remains structurally one of the best positioned companies in the sector, in our view, with one of the best portfolio of new assets globally (it is a winner in our Top 280 analysis), top-quartile cash returns and superior management. Our GS SUSTAIN team also identifies BG as a winner and maintains it on the GS SUSTAIN Focus List.
We believe that these characteristics are likely to lead to outperformance in the long term. However, on a 12-month view, the stocks valuation looks nearly full and there is a risk of delays in some of its key development areas. In Brazil there is a risk of tighter regulation after the Macondo spill; in Australia, the FID of Curtis LNG will depend on an agreement with the government on the application of the Henry tax law; in Kazakhstan any new development in Karachaganak might depend on an agreement with the government regarding the current ownership structure.
Our 12-month SOTP-based target price is 1,355p (from 1,400p), including risked exploration upside in Brazil. The stock trades on an EV/DACF of 11.0x and a P/E of 14.5x in 2011E (vs. the sector on 4.6x and 6.3x respectively). The 3% reduction in the target price is due to our lower oil price assumptions."

StockMarketWire.com
"BG Group has confirmed the success of a new well, Tupi Alto, on block BM-S-11 in the Santos Basin offshore Brazil.

This is the seventh consecutive successful well on the Tupi accumulation and confirms the extended presence of light oil.

Wireline testing confirmed the presence of light oil at approximately 30 API and excellent reservoir properties across the key Sag reservoir.

The information obtained from this well and other wells already drilled, reinforces the estimate of a potential 5-8 billion barrels of recoverable light oil and natural gas from the Tupi pre-salt reservoirs.

BG Group chief executive Frank Chapman said: "The Tupi Alto well, in conjunction with the trend seen in previous Tupi appraisal wells, has confirmed excellent reservoir properties over a wide area in the Tupi field.

"Appraisal results continue to confirm the reservoir models in Tupi, Iracema and Guara by giving better definition in crestal areas and on the flanks of the fields.

"The results continue to de-risk the production outlook for these assets and allow us to optimise field development planning and capital efficiency."

The Tupi Alto well, drilled by partners Petrobras (65%, operator), BG Group (25%) and Galp (10%), is located in the Tupi evaluation area in a water depth of 2 111 metres, approximately 275 km from Rio de Janeiro. "