The well is in the deepwater Qiongdongnan Basin in the South China Sea, approximately 130km offshore and in a water depth of 1 338m.

BG Group will now undertake further analysis of the well results to increase understanding of the hydrocarbon potential in the block.

Block 64/11 is located south of Hainan Island in water depths of 200 to 2 250m.

BG Group chief executive Frank Chapman said that this is an encouraging result from its first well offshore China, where its license area encompasses three Blocks spanning some 15 000sq km adjacent to large and rapidly growing Chinese gas markets.

BG Group plans to continue its exploration program in 2011, with a second well to be completed early in the year and the acquisition of 1 500sq km of 3D seismic data on Block 63/16.