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 license 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 optimizing 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 kilometers north of the original Tupi discovery well (1-RJS-628A or 1-BRSA-369A) in 2 115 metres of water, approximately 265 kilometers from the Rio de Janeiro coastline.