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.

Shares in BG Group were helped higher by speculation that two Chinese oil companies are interested in acquiring BGs Brazilian business, which UniCredit believes could act as a catalyst for the stock.

Given the recent resource estimates increase, it is possible that BG is considering ways to fund its Brazilian developments. This is why the article could act as a catalyst for the stock, given that a potential disposal of part of the assets could add significant value to the stock, said analyst Stefano Vitali.

UniCredit raises the target price on the stock to 1,880p, from 1,800p, and retains its buy recommendation.

Note from Golman Sachs:
"BGs share price performance this year has been lackluster: down 12% ytd in US$ terms, barely outperforming its peers. Yet, the outlook across its business has improved materially: LNG pricing is up 77% ytd; the resource base in Brazil has doubled in size; the Tanzania acreage has yielded interesting discoveries. BG is the only European integrated oil company on the global GS SUSTAIN Focus List, which identifies companies that are likely to maintain returns leadership through superior industrial positioning and ESG scores. We expect BGs high-return, high-impact portfolio to underpin sector leading growth for the next decade.

3Q results are not likely to be a catalyst for the stock, given that high maintenance in the North Sea is likely to dampen E&P results. We believe the key event in the next six months is the February strategy presentation, which has consistently been a positive catalyst for the past six years. We also believe the 4Q results could show very strong profitability in LNG, as the spread vs. Henry Hub is at historical highs, while E&P would benefit from the re-start of the North Sea production. BGs exposure to some of the most attractive new hydrocarbon developments in the world (Brazil deepwater, CBM to LNG in Australia, unconventional gas in the US) could attract the interest of NOCs eager to gain access to these new technological frontiers. We believe that BG could do some very attractive farm-outs of its assets."

Back in these today @1207.

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Rumours around again today of a chinese interest.

3rd Quarter Results.

Total operating profit up 17% year-on-year to $1.9 billion

Cash flow from operations up 59% year-on-year to $2.7 billion

Production up 1%, held back by outages at UK facilities which are now back onstream

2011 LNG total operating profit now expected to be above guidance at some $2.4 billion

Long-term LNG supply agreement signed with Gujarat State Petroleum Corporation, India

Lula to Mexilh gas pipeline, offshore Brazil, commenced operations

All 13 first phase FPSO vessels now committed for BM-S-9 and BM-S-11, offshore Brazil

Good progress on the QCLNG project, with $1.3 billion invested in the quarter

In October, $3 billion of bonds issued with maturities from five to thirty years

Broker note from SocGen:
BG surprised positively on Q3 adjusted divisional EBIT and net income and raised its FY 11 LNG profit guidance from $2.2bn to $2.4bn. Q3 group adjusted EBIT at $1,943m (inc. affiliates) was up 17% year on year, beating consensus by 2.7% on the back of improved performances in both E&P and LNG. Upstream EBIT at $1,183m was up 55% year on year, benefiting from 0.7% higher production and higher realised prices (gas realisations +20%) and somewhat lower exploration charges. UK output was nevertheless 39% below BGs own plan, partly due to slow commissioning of the Buzzard field, and also integrity-related field shutdowns. Unit opex of $8.96/boe was in line with SGe, reflecting the cost of maintenance. Q3 LNG EBIT of $620m was 11% better than SGe but 14% below year earlier levels due to lower LNG Shipping/marketing profit. Note though that the Q3 LNG result was sufficiently ahead of BGs internal expectations, prompting the group to raise guidance for full year EBIT from $2.2bn to $2.4bn. We note that BG diverted 89% of its cargoes (vs 78% in 2010) to non US markets.
We reiterate our Buy rating with a 17 TP (average of a SOP and a DCF (WACC 10.6%)). BG offers a low cost entry into a sizeable and growing resource opportunity; if access to resources is the industrys key challenge, then BG is in our view a near perfect vehicle to gain entry into a 20bnboe resource base. If LNG is going to be a market in which growth is supply, rather than demand, constrained, then again BG is the way to gain exposure.

RNS Number : 9365T

Bg Group plc

14 December 2011



News Release

14 December 2011

Agreement reached with Republic of Kazakhstan on Karachaganak

Bg Group today announced that the Republic of Kazakhstan (RoK) and the contracting companies in the giant Karachaganak gas-condensate field in north-west Kazakhstan have reached an agreement that will support the further development of the field.

The agreement, effective from 30 June 2012 on satisfaction of conditions precedent, involves Kazakhstan's KazMunaiGas (KMG) acquiring a 10% interest in the project. This will be done by each of the contracting companies transferring 10% of their rights and interest in the Karachaganak Final Production Sharing Agreement (FPSA) to KMG.

The pre-tax consideration under the agreement to the Karachaganak contracting companies is $3 billion dollars. The key elements are:

-- The contracting companies will receive $1.5 billion cash pre-tax consideration from RoK in exchange for a 5% interest, to be held by KMG, in the FPSA.

-- The contracting companies will receive a further $1.5 billion pre-tax consideration, comprising $500 million cash and $1 billion non-cash consideration, in exchange for transferring a second 5% interest in the FPSA to KMG. The non-cash consideration includes final and irrevocable settlement of cost recovery and other related claims and the allocation of an additional 2 million tonnes per annum capacity for the Karachaganak project in the Caspian Pipeline Consortium export pipeline.

-- The contracting companies will be responsible for paying tax of $1 billion on the total consideration.

-- The contracting companies will make a $1 billion loan to KMG to be repaid in instalments over a three-year period. The loan will be repaid from the proceeds of KMG's share of oil and gas sales from its 10% interest, backed by a guarantee from Samruk-Kazyna, the Kazakhstan sovereign wealth fund.

Sir Frank Chapman, BG Group Chief Executive, said: "BG Group looks forward to working with KMG as a partner in the Karachaganak project, one of the world's largest gas and condensate fields. This agreement represents an excellent outcome for the project partners as well as for the government and people of Kazakhstan".

Ashley Almanza, BG Group Executive Vice President, said: "Karachaganak is estimated to have hydrocarbons initially in place of 9 billion barrels of condensate and 48 trillion cubic feet of gas - to date less than 10% of that resource has been produced. Today's agreement ensures strong alignment with the Republic of Kazakhstan and provides the foundation for realising the vast remaining potential and value in Karachaganak".

From the effective date of 30 June 2012, BG Group's interest in the Karachaganak project will reduce to 29.25% from the 32.5% previously held. The Group will remain joint operator with Eni, which will also hold 29.25% (currently 32.5%). Chevron will hold 18% (20%); LUKOIL 13.5% (15%); and KMG 10%.

The terms and conditions of the Final Production Sharing Agreement signed in 1997 for the development of the Karachaganak field are unchanged. In addition, the contracting companies and RoK have reached agreement on all tax affairs up to the end of 2009.

-ends-

RNS Number : 7872U
BG GROUP plc
30 December 2011


News Release

30 December 2011
Declaration of Commerciality for Guará area, offshore Brazil

BG Group today announced that its partner Petroleo Brasileiro S.A., as the operator of block BM-S-9 in the pre-salt Santos Basin offshore Brazil, has submitted a Declaration of Commerciality (DoC) with the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) for the accumulations of light oil and gas in the Guará area.

The DoC marks the start of the production phase for the Guará field and is another significant milestone in the development of BG Group's large and high quality discoveries in the pre-salt Santos Basin.

In the proposal, filed with the regulatory agency 12 months ahead of the ultimate deadline, the consortium suggests that the field, comprising excellent reservoirs with good quality 30˚ API oil, be named Sapinhoá. The DoC notification to the ANP also includes the operator's estimates of total recoverable volumes associated with the initial stage of development.

The DoC, submitted following completion of an exploration and appraisal program that started in 2008, was accompanied by the Final Report on the Evaluation Plan. The Development Plan for the field will be submitted to ANP in February 2012.

Four wells were drilled in the area, including one well designed for reservoir data acquisition. Drill stem tests were performed on three of the wells. In addition, a five-month extended well test (EWT) was carried out on the discovery well, confirming the excellent productivity of the Guará reservoir. Data gathered from this EWT will assist in the optimisation of the field development plan.
BG Group has a 30% interest in the BM-S-9 concession, offshore Brazil (Petrobras, operator 45%, Repsol Sinopec Brasil 25%).

-ends-

BG Group 2011 Fourth Quarter and Full Year Results

Full Year Key Points
· Total operating profit up 19% to $8.2 billion

· Strong cash flow from operations, up 17% to $9.8 billion

· Full year dividend increased by 10% to 23.76 cents per share (14.82 pence per share)

· Significant progress on major projects in Australia and Brazil

· Signed 20-year US LNG export agreement for 5.5 mtpa, commencing 2015

· Three-year proved reserve replacement ratio exceeding 200%

· $5.6 billion bonds issued in dollar, sterling and euro currencies

BarCap summary note:
"As we had hoped BG’s strategy update has focused on the upside offered by its LNG business. The 30% uplift to profit guidance to $2.6-2.8bn EBIT from LNG in 2012 is a nice to have. We see more significant upside offered as the group’s hedges unwind in 2013 and expect the company to focus on the “excellent profit momentum” offered by this business in years to come. Company consensus expectations for mid decade LNG EBIT are currently $3.8bn; we see upside to as much as $5bn (Henry hub not all doom and gloom). This is before we price in any incremental profits from the Cheniere contract, which allows BG to exploit its LNG edge without a concomitant lift in capex. On that note its was reassuring that the group has not lifted its spending guidance for 2012-13 despite tougher forex assumptions for Australia. We would also see the $5bn of planned non-core divestments over the next 1-2 years as helpful as spending peaks. In this afternoon’s strategy update we also expect the group to focus on value release from the core. Production estimates for Brazil for end-decade have been lifted 9% to >600k b/d net. Within our 1700p price target we currently ascribe 683p/share to Brazil. This is based on 5.3bn boe of resources being delivered before licence expiry. If BG can persuade us that 6bn boe of resources can be extracted then this would imply 40p/share uplift to net asset value."

Fourth Tanzania well discovers gas - 26 March 2012
RNS
RNS Number : 0385A
BG GROUP plc
26 March 2012

26 March 2012

Fourth Tanzania well discovers gas

BG Group today announced its fourth Tanzanian gas discovery from the Jodari-1 exploration well located in Block 1 offshore southern Tanzania. Preliminary evaluation of the well results indicates gross recoverable resources are in the range of 2.5 to 4.4 trillion cubic feet (tcf) of gas.

The partnership of BG Group (60% and operator) and Ophir Energy plc (40%) have had exploration successes in all four wells so far drilled in Tanzania, with mean total gross recoverable resources currently estimated to be approaching some 7 tcf of gas.

Jodari-1 is located approximately 39 kilometres offshore southern Tanzania and in a water depth of 1150 metres. It is part of the current three-to-four well exploration programme, which also includes the acquisition of 2 500 square kilometres of 3D seismic data in Block 1.

The next target for drilling is the Mzia-1 location in Block 1, some 23 kilometres to the north of Jodari-1. The discoveries announced previously are Chaza-1 in Block 1, and the Chewa-1 and Pweza-1 discoveries in Block 4.

Hic!

23 April 2012

Production begins at Greater Bongkot South, offshore Thailand

BG Group today announced the start of production from the Greater Bongkot South field in the Gulf of Thailand, approximately 200 kilometres east of the city of Songkhla in southern Thailand.

The field, located some 70 kilometres to the south of the existing Bongkot North development, has new standalone facilities with processing capacity of 350 million cubic feet of gas and 15 000 barrels of condensate per day.

BG Group Chief Executive Sir Frank Chapman said: "The start up of Greater Bongkot South was delivered to schedule and within budget. It will increase production capacity for BG Group in Thailand by 50% and will provide material new gas volumes for sale into a growing market. Once plateau production is achieved, Greater Bongkot South will deliver some 14 000 barrels of oil equivalent per day net to BG Group. This development forms part of our portfolio of named projects and discovered resources that keep us on track to deliver our 6% to 8% production growth range by the end of the decade."

Production is expected to reach plateau in the second quarter of 2012. Gas from the project is exported via a new-build spur line while condensate is exported to a floating, storage and offloading vessel at Bongkot North. Production is sold to PTT Public Company.

BG Group has a 22.22% interest in the Bongkot field (PTTEP, operator, 44.45% and Total 33.33%).

-ends-

1st Quarter Results.


First Quarter Key Points


· Total operating profit up 21% to $2.4 billion

· Cash generated by operations up 47% to $2.6 billion

· LNG operating profit up 42% to $812 million

· E&P production up 5% to 60.9 mmboe

· New projects onstream in Norway, Thailand, Bolivia and Egypt

· Fourth gas discovery in Tanzania, mean total gross recoverable resources approaching 7 tcf

· Execution of funding plan on track, with disposals and new funding agreements announced

Barclays comment:
"Market expectations were clearly high ahead of BG’s 1Q figures, with the stock trading at an all-time sector relative high. The numbers today are fine if not blow-out. Adjusted net income at $1.27bn, was up 25% y/y vs. a sector average increase of 10%. Although in line with our own expectations the figures were 5% above consensus – albeit we have seen an average 2% beat to consensus from the Pan European group this quarter. Underlying volumes were up 3.5% y/y vs. 1% growth from Shell and a 3% decline from BP. The group is also making progress on its target to sell down $5bn of assets over the next few years, with today’s announcement of the $1.8bn disposal of Comgas. We are carrying this asset at $1.3bn so the premium is worth an incremental 10p/share. LNG continues to be a strong feature for the group, with profits up 42% y/y at $812m. This is in line with our expectations and it is reassuring that in 1Q alone the group has already delivered 30% of the mid point of the $2.6-2.8bn target set in February. However, markets may have hoped for a bigger beat in this line: although Shell’s integrated gas business includes GtL as well as LNG, that company’s 33% q/q uplift in profits makes BG’s q/q 2% fall look a little downbeat. The other cautionary note in on spending. BG is now lifting its capex guidance for 2012/13 by $1.5bn. This reflects higher costs on the key QGC coal-bed methane project in Australia and is not entirely unexpected given the strength in the Australian dollar and service sector bottlenecks in the region. On the new spending estimates BG’s capex is set to rise 12% this year and 4% next vs a peer group at 6% and 5% in the same years. We would see this as a small price to pay for the 13% pa production growth we see the group delivering 2011-2015. We rate BG 1-OW with a price target of 1850p. "

Fifth consecutive Tanzania gas discovery

29 May 2012

Definitive binding agreement signed for sale of Comgas stake

BG Group today announced it had signed a definitive binding agreement with Cosan S.A. Industria e Comercio (Cosan) for the sale of the Group's entire 60.1% holding in Comgas for Brazilian reais 3.4 billion in cash, or approximately $1.7 billion at current exchange rates. In addition, the transaction will reduce debt on the BG Group balance sheet by some $1.1 billion.

The definitive agreement follows BG Group's announcement in early May that it had signed a memorandum of understanding with Cosan for the sale of the Group's interest in Comgas, Brazil's largest gas distribution company.

BG Group Chief Executive Sir Frank Chapman said: "This transaction, when completed, will release capital of around $2.8 billion which, along with other planned divestments, represents significant progress towards our two-year goal to release $5 billion of capital from BG Group's balance sheet."

The transaction, which is subject to regulatory approval, is likely to complete by the end of 2012.

Further, BG Group and Cosan have agreed, when the transaction is completed, to co-operate on evaluating and developing gas supply options in Brazil. The co-operation agreement reflects BG Group's long-term commitment to Brazil, where the Group and its partners are developing world-class oil discoveries offshore in the Santos Basin. Shareholders in Comgas are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the Sao Paulo stock exchange.

-ends-

Coming up for divi date in early august, I think.

Yes - date still provisional BG Calendar

Credit Suisse has downgraded the oil and gas giant from outperform to neutral and reduced its target price from 1,660p to 1,500p.