2009-08-15-2008-12-01

To acquire company with interest in coal-seam reserves in Surat Basin,Queensland, Australia.

BG Group Plc (London: BG) has made an offer to acquire all of the outstanding shares of Australian gas producer Queensland Gas Co. Ltd. (Australia: QGC) for A$5.6 billion (US$3.77 billion) in cash. BG offered A$5.75 (US$3.87) per Queensland share, an 80% premium over the closing price on Oct. 23. BG currently holds 9.9% of Queensland Gas. Queensland Gas chairman Robert Bryan says, "In the eight years since QGC was founded, the company has prospered beyond our most optimistic expectations, delivering very significant value to shareholders. The next phase of QGC's evolution would require a step-change in the company's skills base, organizational resources and balance sheet capacity. While QGC's deepening relationship with BG Group has been fruitful and positive, it has also clearly revealed the opportunity to create additional value through efficiencies from the integration of the two companies' assets and skills under single-company ownership." Queensland Gas focuses on coal-seam reserves in the Surat Basin in Queensland, Australia. JPMorgan, Goldman Sachs International and Morgan Stanley Australia Ltd. are advisors to BG Group. Austock Corporate Finance Pty Ltd. and ABN Amro Morgans Corporate Ltd. are advisors to Queensland Gas.