British gas exploration company BG Group has confirmed that it has made another new discovery in the Santos Basin, off the coast of Brazil.

Coming just days after the company announced an earlier find within its BM-S-9 concession area, in which it holds a 30 per cent interest, it has now revealed that its Guara well has discovered new reserves.

BG Group chief executive Frank Chapman stated: "This new discovery extends the very significant potential of this world class hydrocarbon province.

"Together with our partners, we will now continue to advance our evaluation and development program, targeting initial production from the pre-salt Santos Basin during 2009."

This latest discovery represents the company's fifth drilling success in the Santos Basin since it began its exploration programme in 2005, though it has been working off the coast of the South American country since 2000.

The country's national oil company Petrobras owns a 45 per cent stake in the BM-S-0 concession area, while Repsol YPF Brazil has a 25 per cent interest.