Presentation of BG Group
BG Group is the largest producer of gas in Tunisia, supplying approximately 50% of the domestic gas demand from the Miskar field.
In addition, BG Group holds two exploration permits in the Gulf of Gabes with a combined surface area of 4 088 sq km.

BG Group intends to undertake further exploration activity in Tunisia and to seek further investment opportunities utilizing its gas chain expertise.

AMILCAR PERMIT
BG Group is operator and joint permit holder with 'Entreprise Tunisienne d’Activités Pétrolières' (ETAP), the Tunisian state owned Petroleum Company, of the Amilcar exploration permit, offshore Sfax in the Gulf of Gabes. In 2006, BG Group was granted a new extension to the Amilcar permit, which will now expire in December 2009.
BG plans to drill two additional wells in 2007/2008 to further prove reserves in the Amilcar permit.
Within the Amilcal permit are the Miskar concession (100%) and the Hasdrubal concession (50% BG, 50% ETAP).

MISKAR GAS FIELD
BG produced around 12.4 mmboe net of gas including fuel gas and condensate in Tunisia from its Miskar field during 2006. Production from this offshore Gulf of Gabes production concession, which is 100% BG Group-owned and operated, commenced in June 1996. Gas from the field is processed at the BG Group Hannibal plant, located 21 km south of Sfax, and sold into the Tunisian gas system. BG Group has a Miskar gas sales contract with the Tunisian state electricity and gas company, Société Tunisienne de l’Electricité et du Gaz (STEG), which gives BG Group the right to supply up to 230 mmscfd on a long term basis.
Offshore compression was commissioned in 2005 to maintain the production plateau of the field.

MISKAR INFILL WELLS
BG Group is in the process of drilling six wells as part of the Miskar infill drilling campaign. The wells will be drilled in phases over the period 2007 to 2009. These wells are required to further extend the field production plateau. Related projects are underway to upgrade the production facilities to process varying compositions of gas and to debottleneck the process facilities.

CONDENSATE PIPELINE
A 60km condensate pipeline is planned to be commissioned in mid 2007.This will improve safety by removing the need to transport condensate by road.

HASDRUBAL DEVELOPMENT
BG Group drilled its first appraisal well, Hasdrubal-3, in June 1997, which flowed at 21 mmscfd. A further appraisal well, Hasdrubal-4, drilled in June 1998, flowed 4.6 mmscfd and 1 800 bopd from a single drill stem test. During 2002, BG Group drilled a further appraisal well, Hasdrubal-SW1, which tested light oil and confirmed the extension of the Hasdrubal field to the south-west.
BG Group submitted a Hasdrubal plan of development which was approved by the Tunisian government in June 2006. Progress with the development has been made, and all major contracts have been awarded. First gas from this joint project (ETAP, BG 50/50) is planned for the first half of 2009. Hasdrubal is a $1.2 billion project and once production commences, BG will be the largest producer of gas, LPG and liquids in Tunisia.

ULYSSE PERMIT
BG Group is operator and joint permit holder with ETAP of the Ulysse exploration permit, offshore Sfax in the Gulf of Gabes. BG Group acquired an approximate 900 sq km extension to the Ulysse permit in August 2004. Two commitment wells are required by 2008.