BG Group enters Madagascar with Vanco farmin

BG Group has acquired a 30% interest in the Majunga Offshore Profond exploration block in Madagascar under a farmin agreement with Vanco Madagascar Ltd., marking BG's entry into that country.

June 15, 2006

By OGJ editors
HOUSTON, June 15 -- BG Group has acquired a 30% interest in the Majunga Offshore Profond exploration block in Madagascar under a farmin agreement with Vanco Madagascar Ltd., marking BG's entry into that country.

The area's work program includes the drilling of an exploration well planned for early 2007. The block, which covers about 15,840 sq km, lies in 200-3,000 m of water off northwestern Madagascar, about 100 km from Mahajanga.

"The Majunga Block forms part of a largely unexplored frontier basin with significant potential," said BG Group Executive Vice-Pres., Mediterranean Basin and Africa, Stuart Fysh.

BG's block partners are operator ExxonMobil Exploration & Production Madagascar Majunga Ltd. 50% and South Korea's SK Corp. 20%.