That stock News

BG Group
￡ 1.303
Questor says HOLD

According to the estimates of resources for these fields, three floating production, storage and offloading (FPSO) ships which are at the two sites are expected to recover the total gross reserves of approximately 2 2bn barrels equivalent oil (Sen). Part of the BG Group is about 600 m net special educational needs.

The first FPSO Tupi field has a production capacity of 100,000 barrels of oil per day (bopd) and to the standards m cubic 177 feet per day (mmscfd). Production began in October.

The company also observes that producing hydrocarbon reservoirs, characteristics should be cheap, with the cost of $5 per barrel in capital and the operating costs of $9 per barrel. With oil prices looks set to increase over the next few years – or at least remain at high levels - it is very cheap.

The shares are trading on earnings from December 2010 multiple times 17.4 with just 0 9pc yield dividend. Actions have been first recommended to ￡ 10 January 5 and they are compared with the FTSE 100 up 26pc 32pc.

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