BG Group rises following farm-in agreement in Mongolia

Shares in BG Group jumped on Tuesday thanks to the oil market recovery and the acquisition of Mongolian assets.

Oil market benchmarks recovered following declines in pre-Easter trading as Iranian nuclear talks ended in a settlement.

The natural gas company entered into an agreement with Petro Matad, acquiring a 78% stake in Block IV and Block V in central Mongolia for $28m.

In addition to the mutually agreed amount, the group will pay Petro Matad $4.5m in cash.

Oyungerel Janchiv, acting chairperson at Petro Matad said: "BG Group's decision to enter Mongolia is an endorsement of the potential within the acreage and Petro Matad's technical work to date."

Shares in BG jumped 6.74% to 910.4p on Tuesday, while Petro Matad gained 67.26% to 8.99p.