LONDON, (Reuters) – British gas producer BG Group Plc said testing on a well it and partner Petrobras drilled offshore Brazil did not confirm hydrocarbons despite an initial examination suggesting gas could be present.
A spokeswoman for BG said yesterday that while the Corcovado-2 well in the BMS-52 block had failed to live up to earlier hopes, BG was still evaluating the well results and that the company planned to continue drilling at another site on the block.
BG shares, which had fallen on rumours the company was briefing selected investors about the well, traded down 2.0 percent at 1050 pence at 1523 GMT, against a 0.4 percent rise in the DJ Stoxx European oil and gas sector index. The BG spokeswoman denied any investors had received preferential information, saying all investors and analysts which sought information on the well, received it.
Billions of barrels of oil have been discovered offshore Brazil in recent years, creating the potential for Brazil to become an important crude exporter.
