Tsuen Wan International: BG Group shares soar on news of Brazil reserves estimates doubling.

June 30, 2011 - PRLog -- Tsuen Wan International sources report that that the reserves estimates in Brazil’s Santos basin have been doubled to six billion barrels, lifting shares in BG Group and its partners.
The revision of the estimates for the reserves, co-owned with state-controlled Petrobras , Spain's Repsol and Portugal's Galp Energia , comes after new  tests and highlights the value of the finds, which are seen as one of the industry's biggest new oil provinces in recent decades.

Analysts at Evolution Securities informed Tsuen Wan International that the latest announcement could add £2.80 to its valuation of BG's shares.

"Today's announcement should also add further confidence to the production growth target of 6-8% pa to 2020," the brokerage went on to say.

The British energy firm said its portion of recoverable resources from the fields could represent between four and eight billion barrels. It considers six billion the best estimate, up from an earlier estimate of three billion.

The company’s CEO Frank Chapman said production capacity would climb steadily to over 2.3 million barrels of oil equivalent per day by 2017.

"I believe this ... will transform the scope, scale and value of BG Group," he told Tsuen Wan International.

A company spokesman said the economics of developing the reserves were also improving, partly because the per-barrel costs dropped with higher reserves estimates

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