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.

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. "

Bg Group agrees to sell its interest in Premier Power Limited
BG Group today announced that it has signed a Share Sale Agreement with AES
Ballylumford Holdings Limited, a wholly owned subsidiary of AES Corporation, for
the sale of Premier Power Limited, a wholly owned subsidiary of BG Group, for a
total consideration of GBP99 million (approximately $150 million).

Premier Power Limited operates the 1 246 MW power plant located at Ballylumford
in Northern Ireland.

Closing of the transaction is subject to receiving the customary regulatory
approvals. The transaction is expected to complete in the second half 2010.

StockMarketWire.com
Second quarter earnings at BG Group fell 21% to $602m, compared with $761m during the same period a year earlier.

Earnings for the first half were 12% down at $1,562m.

Group revenues for the half year totalled $4,160m - up from $3,478m last time.

Pre-tax profits fell to $1,028m from $1,369m with a loss on disposals of $494m in the period.

Chief executive Frank Chapman said: "These are good results, accompanied by continued progress with the delivery of our growth plans.

"We had further appraisal success in the Santos Basin, offshore Brazil, and production from our first permanent production facility on Tupi is expected later this year.

"In Australia, our total reserves and resources are now 2.9 billion boe, and we remain on track to sanction the QCLNG project later this year. We have substantially increased our total US shale gas reserves and resources to over 1.3 billion boe."

Starting to look undervalued here.....with big prospects being turned into production.....I'm expecting a rebound back to above 11 soon as long as crude holds up....

I see the Shell bid is doing the rounds again!

http://www.ft.com/cms/s/0/959a13e2-ab5c-11df-abee-00144feabdc0.html



Oil bid talk sees BG stand firm in a falling market

By Michael Hunter

Published: August 19 2010 09:23 | Last updated: August 19 2010 20:41

BG Group stood firm against a falling London market amid renewed rumours of oil sector consolidation.

BG was in focus on talk that it had been targeted by two possible bidders willing to pay at least 16 a share. Such a price tag would value BG at nearly 54bn.

Petrobras, Gazprom, Exxon Mobil and Royal Dutch Shell have been cited as potential predators for BG in the past, traders said.

Sterlings weakness may also work in a bidders favour with BG stock down 40 per cent in dollar terms in slightly more than two years.

Investors difficulty in valuing BGs important fields in Brazil, Kazakhstan and Australia made it a credible takeover target, analysts said.

JPMorgan Cazenove has estimated that the shares, down 0.6 per cent to 10.30 yesterday, stand at a 30 per cent discount to net asset value.

From another BB:
"What is firing this stock is the Brazilian assets, that are due to be valued in November. BG, Shell, Exxon, and a few others, signed on to the Brazilian leases before the government then stamped down on such generous terms. Basically, the government did not realize it was sitting on gigantic petroleum reserves. The markets makers want to pick up the stock as cheaply as they can before any formal announcement. This has the makings of a singular event. Be wary, but there is a lot of promise on the upside. Brazil is the future, not Greenland."

London Evening Standard
Drama surrounds BG as City chatter has Shell ready to lunge

Today, the City's biggest gossips were talking up the chances of a bid for the oil explorer of 18-a-share.

So who was the rumoured predator? Step forward Royal Dutch Shell, the oil titan who is said to be keen to increase its oil and gas reserves in Australia. Shell is often thought the most likely to pounce on BG, although most of the sector's biggest names - including Petrobas, ExxonMobil and China's Sinopec - have been mooted as potential suitors in the past.

Investors seemed keen on today's yarn, however, with BG surging 63p to 1182p. Almost 8.5 million shares changed hands by 11.15, above the average daily trade. BG was also helped higher by news that Repsol, its Spanish partner in its Brazilian operations, had announced a $17.8 billion (11.2 billion) tie-up with Sinopec to develop its projects in the area.

From the Sunday Times:
"Last week brought a twist. Shares in the 40 billion company rose on speculation that CNOOC, Chinas state-owned gas giant, could be sizing it up. The conventional wisdom is that such a bid is extremely unlikely. Beijng taking control of one of Britains business behemoths? Surely not.

But the thinking behind it throws up some interesting questions. BG is focused on three growth areas: the gas-rich coal seams of Australia; the giant oil fields in the deep water off Brazil; and shale gas resources in the American south and Midwest.

Now consider what China has been up to. Two weeks ago Sinopec, CNOOCs sister company, paid $7.1 billion (4.4 billion) for a minority stake in Repsol, the Spanish oil group that owns rights to the Brazilian deepwater fields.

Ten days later, CNOOC paid $1 billion for part of a giant shale field in Texas. Last year it signed a 20-year deal to take gas from BGs coal-seam gas project in Australia. Maybe the rumour-mongers have a point?

It is no secret that the worlds most populous nation is desperate to get its hands on oil. The 50 billion that BG would fetch is too rich for just about anyone except the Chinese government.

The trick is for BGs chief executive, Frank Chapman, to close the valuation gap between the price at which bankers think he would be willing to sell call it 18 a share and its current trading price of 11.67.

He may have trouble doing that by simply staying the course. If BG meets his rosiest projections, in a decade the company will be producing 1.6m barrels of oil and gas a day up from an average 644,000 last year.

Making that leap depends on the tricky business of exploiting its vast resources deep under the ocean and in tight geological formations on land. BP has demonstrated the perils that await. Unsurprisingly, investors are nervous.

One option suggested by analysts at HSBC would be to reduce risk, and costs, by selling a minority stake in BGs Brazilian arm to, say, the Chinese. A 40% stake would, on the Repsol multiple, yield $15 billion half of which could go back to investors through a special dividend. That would certainly give a bump to BGs shares. As Chapman knows well, the best defence is a high share price."

Tanzania exploration well encounters hydrocarbons
TIDMBG.

RNS Number : 8661U

Bg Group plc

22 October 2010


News Release

22 October 2010

Tanzania exploration well encounters hydrocarbons

Bg Group (60%) today announced that the Pweza-1 exploration well, located in Block 4 approximately 85 kilometres offshore southern Tanzania and in a water depth of 1 400 metres, has demonstrated the presence of a working hydrocarbon system after encountering gas-bearing sands.

In May 2010, BG Group received consent from the government of the United Republic of Tanzania to farm-in to interests held by Ophir Energy plc (as operator) offshore southern Tanzania in Blocks 1, 3 and 4 of the Mafia Deep Offshore Basin and northern portion of the Ruvuma Basin.

Pweza-1 is the first of a three-well initial work programme planned for Blocks 1, 3 and 4. The programme also includes the acquisition of 4 000 square kilometres of 3D seismic data. BG Group has the option to assume operatorship of all three Blocks upon completion of the initial work programme.