UK oil and gas producer BG Group has announced that it is doubling its Brazilian oil estimates.
The news has sent the organisations stock soaring by nearly five per cent, after a host of exploration success in the Santos Basin in recent times.
It means that BG now estimates to have six billion barrels of oil equivalent, which is twice the three billion which was previously estimated at the beginning of this year.
Sir Frank Chapman, chief executive of BG, told those looking at Brazilian property: “The doubling of our estimated Santos Basin mean reserves and resources demonstrates the continued rapid evolution of our understanding of these enormous discoveries.”
Jean Charles Lacoste, an analyst from Cheuvreux Credit Agricole, stated that this was not unexpected news as it comes after BG raised expectations in its Brazilian fields last November.
“As a preliminary guess, we would quantify todays announcement at around 300p per share,” he added.
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