BG Alaska Enters into Agreement for Alaska North Slope Exploration.

HOUSTON -- BG Alaska E&P, Inc., a wholly owned subsidiary of BG Group plc (NYSE:BRG), today announced that it has signed a Participation Agreement with Anadarko Petroleum Corporation (NYSE:APC) and Petro-Canada (Alaska) Inc., a wholly owned subsidiary of Petro-Canada (NYSE:PCZ) for a 33.33 percent equity share in 2.1 million acres of land in the Foothills area of the Alaskan North Slope. Each partner now owns a one-third working interest in the acreage and Anadarko will serve as operator.

Alaska's North Slope has estimated discovered reserves in excess of 17 billion barrels of oil and 35 trillion cubic feet (tcf) of gas.

The Participation Agreement became effective from January 26, 2006 and is subject to the relevant approvals of the State of Alaska and the U.S. Bureau of Land Management.

Martin Houston, BG executive vice president and managing director, North America, Caribbean and Global LNG, said:

"This agreement builds on our existing North American E&P business in Canada and creates the potential for increasing BG's natural gas supply position into the U.S. gas market, which is underpinned by our LNG importation business. We will manage these assets from our office in Calgary, leveraging the technical capabilities we have developed since we commenced our operations there."

There are matters discussed in this media information that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward-looking statements, refer to the Company's annual report and accounts for the year ended December 31, 2004.

Notes to Editors:

BG Group (www.bg-group.com) is a global natural gas business. Active in more than 20 countries, it operates four business segments -- Exploration and Production, LNG, Transmission and Distribution and Power.

The Alaska North Slope Exploration Project is located on 2.1 million acres of land in the Foothills area of the Alaskan North Slope.

BG North America

In the U.S., BG LNG Services, LLC (BGLS) holds, until 2024, 100 percent of the capacity rights at North America's largest operating LNG import terminal, Lake Charles in Louisiana. This has the capability to receive, store, vaporize and deliver an average daily send out of 1.2 billion cubic feet per day (bcfd). Expansion work is scheduled to increase the average send-out rate to 1.8 bcfd by mid-2006. BGLS also currently holds supply and regasification rights of 446 million cubic feet per day (mmcfd) for 22 years at the Elba Island LNG terminal near Savannah, Georgia. BG recently announced an agreement with an El Paso Corporation subsidiary to further expand BG's position at Elba Island to 1.17 bcfd of send-out capacity from 2012.

BG Canada

BG Canada's first Canadian drilling program commenced in May 2004 and continued through the winter drilling season into March 2005. Of the 17 wells drilled, 11 have discovered gas.

Following a successful bid in the Northwest Territories in May 2005, BG Group holds approximately 875,000 net acres, of which 811,000 is undeveloped oil and gas acreage. The new blocks, EL 429/432 (net 275,490 acres) are located in the central Mackenzie Valley area of the Northwest Territories.

Current gas production is sold into the grid for the Canadian and U.S. markets.

BG Group has offices in Calgary, Alberta and Fort St. John, British Columbia.

Notice:

"The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The term `estimated discovered reserves,' used in this press release with reference to Alaska's North Slope, is a term that the SEC's guidelines strictly prohibit BG Group from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our form 20-F, File No. 1-09337, available from us at BG Group, 100 Thames Valley Park Drive, Reading RG6 1PT. You may read and copy this information at the SEC's public reference room, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 800-SEC-0330 for further information on the public reference room. This filing is also available at the internet website maintained by the SEC at http://www.sec.gov."