BG Group (LON:BG.), the oil and gas giant, this morning reported the success of a new well known as Tupi Alto on block BM-S-11 in the Santos Basin pre-salt, offshore Brazil. This is the seventh consecutive successful well on the Tupi accumulation and has confirmed the extended presence of light oil. BG noted that wireline testing had 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 to 8 billion barrels of recoverable light oil and natural gas from the Tupi pre-salt reservoirs. Shares in the FTSE 350 group were trading 2.5% lower at 1069p during the morning.

Frank Chapman, BG Group’s chief executive, 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. Drilling on Tupi Alto has been concluded and drill stem tests to evaluate reservoir productivity will be conducted in due course. The partners now intend to continue the activities and investments set out in the Evaluation Plan approved by the Brazilian National Petroleum Agency.

In March, BG announced the completion of a drill stem test on the Tupi North-East well in BM-S-11. Potential production from the well was estimated at around 30,000 barrels of oil per day. BG has interests in five concessions in the deep water Santos Basin: BM-S-9, 10, 11 and 50, which are operated by Petrobras; and BM-S-52, which is operated by BG. The group also holds an operated interest in the BM-S-47 concession in the shallow water Santos Basin and holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.

In its annual strategy…

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