British gas producer BG Group Plc said a well it and partner Petrobras drilled offshore Brazil does not contain hydrocarbons despite an initial examination suggesting gas could be present.

A spokeswoman for BG said on Monday that while the Corcovado-2 well in the BMS-52 block had failed to live up to its earlier promise, work continued on the block.

BG shares, which had been down on rumours the company was briefing selected investors about the well, added to earlier losses to trade down 1.6 percent at 1425 GMT, lagging a rising 0.6 percent rise in the DJ Stoxx European oil and gas sector index .SXEP.

(Reporting by Tom Bergin; Editing by Jon Loades-Carter)