Two great drilling results in the space of a week have once again confirmed the lucrative upside in BG Group's offshore Brazilian licences, where it has made a string of exciting oil discoveries across the Santos Basin.
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First, the company announced on 9 September that well testing on the Guara discovery, made in June, indicated that the strike could yield some 1.1-2bn barrels of recoverable oil, considerably more than analysts were modelling and a catalyst for upgrades across the City. Then, 15 September saw BG announce yet another new Santos Basin discovery, as the Abare West exploration well successfully hit oil and gas, although it is too early for any indication of recoverable reserves.
