• Two Britons allegedly killed in Algerian bid to free hostages

• Some hostages flying back to London on BP plane

• Britain not informed of raid before it began

• Crisis the 'price we pay for supporting French Mali mission'

• Cameron warns country to 'prepare for bad news'

Latest

23.30 We're going to leave it there for the night. Please check our Algeria page for the latest.

23.00 The Lib Dem press office has excoriated Sir Graham Watson MEP for his earlier tweet gloating about how the Algeria crisis had pushed back Cameron's speech on Europe.

<noframe>Twitter: Lib Dem Press Office - The tweet from <a href="http://www.twitter.com/grahamwatsonmep" target="_blank">@grahamwatsonmep</a> was sick, offensive and rightly condemned. He's deleted the insensitive comments and profusely apologised.</noframe>

22.45 Reuters is putting the current hostage death toll at 30, both Western and Algerian, but that's likely to keep moving as time goes on. Here's the current casualty breakdown:

British: 2

Japanese: 2

French: 1

Algerian: 8

22.40 The actual situation on the ground remains far from clear. Despite reports that the crisis is over, Algeria's state news agency is saying government troops are only in control of the residential area while the gas facility itself is still surrounded. Not clear whether that means some of the gunmen are still alive or if Algerian troops are concerned about mines and explosives and therefore reluctant to move in.

22.35 Alistair Burt, the minister for the Middle East, has repeated the government's warning that there is "bad and distressing news still to come.

Speaking outside the Foreign Office after a hasty return from a trip to Cairo, Mr Burt said:

Although details have yet to become final I am afraid we should be under no illusion that there will be some bad and distressing news to follow from this terrorist attack. Those who have been working with the families during the course of the day will continue that work of advice and support, though this will take some time.

You will appreciate that there is a limit to what I can say at present given ongoing security issues. All our thoughts should be with those who have been caught up in this tragedy and particularly with the families who have already suffered so much distress.

22.15 Reports that BP has chartered a plane and is heading back to London with at least some of the hostages aboard. We're expecting the flight to touch down around midnight GMT. In the meantime, we're awaiting an official update from BP on the situation.

<noframe>Twitter: Jennifer Griffin - BP chartered plane from Algeria to London expected to arrive later tonight. Some ex-hostages may be on board: sources.</noframe>

<noframe>Twitter: Justin Fishel - Algerians saying the hostage situation is over. No final word on casualties. We know that 2 Americans escaped and are en route to London</noframe>

21.32 Reuters is quoting an Algerian security source saying the death toll in Algeria today is 30 hostages, including two Britons, one French national, two Japanese nationals, and eight Algerians. There is still no official confirmation on the death toll tonight.

20.54 Algeria state television is reporting that two Britons are among the four foreigners killed in the operation to release the hostages. The report, cited by The Associated Press, also said that 13 people were wounded, including seven foreigners.

Earlier, the kidnappers had said 35 foreigners and 15 militants were killing in the rescue operation.

Meanwhile, No10 has published a transcript of the Prime Minister's statement on Algeria, in which he warns this is a "very dangerous, very uncertain, very fluid situation" and adds that "we should be prepared for further bad news".

20.34 The Foreign Office has confirmed that William Hague is cutting short his trip to Australia to return to the UK to deal with the crisis.

20.12 The BBC's Nick Robinson is reporting that while the major military operation is over, the UK government has been told the plant is still being searched. Whitehall sources have told him that they are preparing for news of multiple British casualties, with fears that earlier reports of the deaths of up to to 35 hostages of various nationalities may yet turn out to be true.

20.01 Sky News' Tim Marshall is tweeting reports that the hostage siege is now over:

<noframe>Twitter: Tim Marshall - Algerian news agency says hostage siege over.</noframe>

19.40 HIllary Clinton, who is back to work after her blood clot scare, says that the situation in Algeria is still too fluid to comment on the hostage taking.

19.38 According to Richard, who again is citing obscure Middle Eastern reports, among the militants killed were an up-and-coming Mauritanian jihadi leader, 18-year-old "Zarqawi al-Mauritani" (which might just mean the Mauritanian Zarqawi, after the late leader of Al-Qaeda in Iraq), and the leader of the "Sons of the South for Islamic Justice", Taher Amir (Lord Taher), who was in his 50s.

19.30 Richard Spencer, our Middle East Corresopndent, meanwhile says that the seizure of the gas complex by the desert jihadis could not have been more embarrassing for the famously tough Algerian armed forces.

The country was supposed to have had the Islamists beaten, after a war which cost 100,000 lives in the 1990s civil war. Only last Saturday, the Algerian, Libyan and Tunisian prime ministers issued a joint pledge to enhance security on their borders.

Yet, over a territory without cover, the attackers managed to creep up on and surprise hundreds of local and foreign staff.

Algeria relies on its oil and gas reserves to maintain its economy, and relies on foreign companies to keep them pumping.

A determination to hit back hard and fast, irrespective of the consequences, may have been the result. Analysts say the army, known for brutality in the war but not for recklessness since, normally refrains from "all guns blazing" operations.

19.28 Ed Butler, Executive Chairman of Salamanca Risk Management, who served 24 years in the British Army, where he spent the majority of his time with UK Special Forces, tells The Telegraph that this particular operation will have been hugely challenging.

The facility may have been booby trapped, the terrorists have been operating in the area for 20 years and there were a large number of local and expatriate hostages.

The decision to use force, taken and implemented so fast, would almost certainly be handled in a very different way by a European power where such situations are thankfully rare. Political priorities militate against an assault - unless all alternative strategies have been exhausted. In contrast, Algeria's lengthy conflict against extremists has produced a more hard-nosed approach.

Algeria never allows foreign forces to operate within in its borders and their troops and planners face a very demanding mission - there are many hostages both local and expatriate, and the group behind the attack has been operating in the region for 20 years.

Ed Butler is Executive Chairman of Salamanca Risk Management and served 24 years in the British Army

19.24 According to my colleague Richard Spencer, citing various sources and Twitter feeds, information is drying up somewhat because the main militant who was speaking to the Mauritania news agency ANI was among those killed.

19.15 Algeria's Communication Minister Mohamed Said says the army has "neutralised" Islamist gunmen fleeing the plant.

An important number of terrorists who tried to flee to a neighbouring country have been neutralised.

19.10

expressing their delight at his release.

18.56 Tim Ross says on Cameron's decision to cancel the Europe speech:

Many Westminster observers had been questioning whether he could continue with his trip to Amsterdam to discuss a potential EU referendum with the situation in the Sahara worsening by the hour.

The Number 10 spokesman has faced questions all day about whether it was wise to continue but insisted - until now - that the PM could deliver the speech and still remain "in charge" of the hostage crisis.

Mr Cameron even ordered a contingency plan which would have enabled him to chair a meeting of the Cabinet's emergency Cobra committee from The Hague tomorrow.

But with reports of fresh explosions, and the fate of an unknown number of British workers at the BP plant still unclear, the Prime Minister has decided he is needed at home.

18.47 Sky News is reporting that the operation has halted, although it is unclear if it is over or has simply paused.

18.45 Algeria's communications minister has confirmed "several people" have been killed or wounded in the ongoing assault.

18.40 David Cameron has postponed his speech tomorrow in the Netherlands on Europe to stay in Britain because of the Algerian crisis, Downing Street has confirmed.

The Prime Minister also said that Britain should be "prepared for the possibility of further bad news."

18.36 It seems if Jon Swaine, our Washington Correspondent, is to be believed, then Algeria isn't doing a very good job of keeping anyone in the loop.

Leon Panetta, the US defence secretary, told reporters travelling with him in London that American officials were scrambling to obtain details about the raid and indicated that Washington had not been informed beforehand.

18.33 ... And as I typed that previous entry, Tim Shipman of the Daily Mail tweets that Cameron's aides are reportedly considering whether to call the speech off:

<noframe>Twitter: Tim Shipman (Mail) - Cameron aides are 'intensively mulling' whether to call the Europe speech off</noframe>

18.32 James Kirkup has raised the rather thorny issue of timing for David Cameron, who is due to take centre stage tomorrow for a speech on Europe.

But what about the PR? What about the optics? How will it look to voters if, at a time when their fellow citizens are in mortal peril, Mr Cameron's attention appears to be focussed on the relatively abstract concept of Britain's EU membership? The reason Mr Cameron once warned his party against "banging on about Europe" is that it fuelled the suspicion that Conservatives were people focussed on the wrong issues, interested in their own concerns and not those of the electorate.

18.29 Mohamed Said, Algeria's communications minister, has confirmed the assault is still underway.

There will be neither negotiation nor blackmail nor respite in the fight against terrorism.

Algeria is regularly informing its partners (of the situation on the ground).

[The group] wants to destabilise Algeria and push it into the war in Mali.

He added that the assault "started with warning shots of the army to Jihadists trying to flee with hostages", who wanted to "use them as bargaining chips".

"The terrorists didn't stop", he said.

18.24 A local man who escaped the gas field crisis, going by the name of Abdelkader, aged 53, tells Reuters that the gunmen told Algerian staff they would not harm Muslims but would kill Western hostages they called "Christians and infidels".

The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels... We will kill them, they said.

I am still choked, and stressed... The terrorists seemed to know the base very well... Moving around, showing that they knew where they were going.

18.14 Contrary to earlier reports - which were never confirmed - an Algerian minister has told AFP that the military operation is still underway at the gas site.

18.10 Via Henry Samuel, Frederic Helbert, a French reporter, has given a grim prognosis.

"We will find less survivors among the hostages than dead people, some killed in appalling fashion," one source "close to French government", he tweets.

He quotes a source close to the Elysée as saying: "There have been assassinations of hostages in horrible conditions since the start of the assault by Algerian special services."

<noframe>Twitter: HELBERT frederic - DoubleCheck: Proche <a href="http://search.twitter.com/search?q=ex" target="_blank">#ex</a>&eacute;cutif fr: On trouvera moins de <a href="http://search.twitter.com/search?q=survivants" target="_blank">#survivants</a> parmi les <a href="http://search.twitter.com/search?q=otages" target="_blank">#otages</a> ,que de <a href="http://search.twitter.com/search?q=morts" target="_blank">#morts</a>. tu&eacute;s pr certains de mani&egrave;re affreuse.</noframe>

18.05 Abbas Bouaâmama, dignitary from In Aménas tells TSA news: "The situation is now calm. But terrorists remain in the base."

18.04 Francois Hollande, who may face some criticism in the coming days for the mission to Mali, has stood up for French actions. He said the events seemed to have taken a "dramatic" turn at the gas plant, but he did not yet have enough information to allow a proper assessment of the situation.

Nonetheless he said:

What's happening in Algeria provides further evidence that my decision to intervene in Mali was justified.

Francois Hollande, the French president (Reuters)

18.02 We bring you the first photograph of Stephen McFaul, the Irish man who has been freed in the raid, as well as comments from his son, Dylan, who said: "I am just over the moon. I am really excited. I can’t wait for him to come home. I am never letting him go back there."

Stephen McFaul (Photopress Belfast)

18.00 David Lidlington, the Foreign Office minister, has been speaking about neighbouring Mali, saying that the Government has vowed to play its part to counter the creation og of a new "terrorist haven" on Europe's doorstep, particularly pertinent, given the events of the last 48 hours.

There is a clear risk of the region becoming a haven for terrorists, which could threaten Europe and the UK.

That is why it is in the clear interests of the UK to support efforts by the French and the Malian government to stabilise the country.

17.44 Francois Hollande, the French president, says that the hostage taking "appears to be ending in dramatic fashion."

Saying he was "constantly informed" of developments by the Algerian government, he added:

What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the UN charter. It is about stopping a terrorist attack and to allow Africans to reinstall Mali's territorial integrity. We must also do what France expects of us, our duty, to commit France when it considers its values are at stake and to respect our commitments.

17.26 Deborah Haynes, The Times' Defence Editor, has tweeted that Britain's ambassador to Algeria is still waiting for permission to travel to the site.

<noframe>Twitter: Deborah Haynes - UK ambassador to <a href="http://search.twitter.com/search?q=Algeria" target="_blank">#Algeria</a> still waiting for Algerian permission to travel to site of <a href="http://search.twitter.com/search?q=hostage" target="_blank">#hostage</a> crisis as he can't leave capital without it</noframe>

17.23 Japan has urged Algeria to put an immediate end to the military operation at a gas field where dozens of hostages have reportedly been killed, a senior minister said on Friday.

Minoru Kiuchi, the vice foreign minister, who is now in Algeria, met the country's foreign minister "and urged the Algerian government to stop the operation immediately", chief cabinet secretary Yoshihide Suga told reporters in Tokyo.

17.16 Jay Carney, the White House spokesman has told the US press corp America is seeking clarity from the Algerian government at this time and they are monitoring the Algerian situation closely. US citizens are among the hostages.

<noframe>Twitter: Steve Holland - "This is an ongoing situation, and we are seeking clarity," WH's Carney said re Algeria hostage situation.</noframe>

17.12 Al Arabiya, the Arabic news site, tells us that the Algerian defence ministry is due to issue a statement within an hour.

<noframe>Twitter: Al Arabiya English - <a href="http://search.twitter.com/search?q=BreakingNews" target="_blank">#BreakingNews</a>: Algerian defense ministery to issue statement within one hour: Al Arabiya correspondent</noframe>

16.57 Tim Ross, from Westminster, has more on Britain's reaction to the raid and how Downing Street was repeatedly ignored by Algeria.

In a phone call with the Algerian PM yesterday, David Cameron asked to be consulted before any raid was launched but clearly this fell on deaf ears.

Downing St said Cameron called again at 11:30 this morning and only at this stage - once the operation was under way - did Algeria confirm that the raid had begun.

Reading between the lines, it is clear that the British government already knew it was happening - either through intelligence sources, spy planes or satellites, or perhaps from reports on the newswires.

We are told the PM's tone during the conversation was "pretty business like" but he clearly protested, repeating his point that he "would have preferred to have been consulted in advance" of military action beginning.

On the "grave" and continuing situation on the ground, the Downing St spokesman said: "Our thoughts are with all the hostages and their families and friends at what is an intensely difficult time. Our priority is to try to give the families involved as much information as we can.

"We are liaising closely with the Algerian government and other international partners to establish the precise position on the ground."

So, Britain has offered any available help to Algeria, but this was declined.

The UK also asked to be told before any raid was launched. This too was ignored. And the PM has asked to be kept fully informed of developments, but the government is urgently trying to establish "the position on the ground", including the fate of British hostages.

Cameron has also spoken to the French President, Francois Hollande, and President Obama about the crisis today.

A final thought: Number 10 say that while the operation is "fully Algerian", options are "always kept under review".

16.43 Eamon Gilmore of Ireland has released a statement following the release of Stephen McFaul.

I am extremely thankful and relieved to learn that the Irish national who was a hostage in Algeria has made contact with his family and is safe. I spoke with his family yesterday, and I know how relieved they will be that he is well after his ordeal. This is the news that we all wanted to hear.

At the same time, my thoughts are with the other oil-field workers who are caught up in this terrible situation and with their families who are also waiting for news at this difficult time. We continue to liaise with the Algerian authorities and with the authorities of the other countries affected by this incident.

I want to thank the media for the responsible manner in which they have reported this story over the past 24 hours and the Consular staff and other officials of my own Department for all their efforts.

Christopher McFaul, Stephen's father, has meanwhile told Sky News he is "delighted" his son is no longer being held captive but added he felt "sorry for the other hostages that are still there."

Christopher McFaul via Sky News

16.38 The Algerian army bombarded a column of kidnappers who tried to flee with hostages, according to Radio France International, which added it was their fourth escape attempt. Their correspondent Leila Beratto said:

The only thing we are sure of is that the Algerians broke off negotiations with the kidnappers...

It was the fourth attempt the kidnappers made to escape. They tried to take five hostages with them but were pushed back. Algeria had agreed to negotiate with the kidnappers on condition they didn't touch the hostages, that they left them at the base. They could on this condition leave the country. But as they didn't respect this condition, the negotiations were broken off.

16.36 The American military has meanwhile confirmed that at least one US unarmed drone is over the complex.

<noframe>Twitter: Sky News Newsdesk - American military official says at least one U.S. unarmed drone is over Algeria BP gas complex where hostages are being held</noframe>

16.32 From Downing Street: David Cameron was only informed that the operation by the Algerian army was under way when he telephoned the Algerian prime minister. His spokesman added that Mr Cameron made clear that he would have preferred to have been informed in advance of the military action.

The Algerian Prime Minister explained that the situation was very fast-moving and that in the government's judgement they needed to act immediately.

The Algerians are aware that we would have preferred to have been consulted in advance.

16.04 Le Monde, the French newspaper, suggests that the attack by the Algerian army is over, and has been since 3.30pm GMT. They are citing the correspondent of El Watan, the Algerian daily.

15.55 A large explosion has been heard at the Algerian gas complex, according to Sky Sources.

<noframe>Twitter: Sky News Newsdesk - Sky Sources: a large explosion heard at Algeria gas complex, away from accommodation block</noframe>

15.49 More on the helicopter attack and how hostages were killed.

A spokesman for the Islamists has told the Nouakchott News Agency that some of the Western hostages were killed with some of their captors.

The spokesman said:

The battalion tried to transfer some of the hostages to a safe place by the company's cars in which they work, but the Algerian air force bombed the cars and killed undefined number of the hostages and their captors.

15.39 Survivors of the army assault are being transported by plane to Hassi Messaoud, 450 miles to the north, according to Algerie-Focus, via Henry Samuel.

The news website also said according to freed hostages, the hostage takers were made up of several “foreign” units, including several individuals "from the Middle East".

According to Knaoui Sidi a local dignitary quoted by the TSA daily, the Algerian government had offered the kidnappers a deal: “To leave Algerian soil but without the hostages". Clearly, the offer was not sufficient.

15.30 Following the Algerian army's air attack, they are now launching their ground assault, according to a kidnapper.

Richard Spencer meanwhile tells me that according to ANI, whose website went down and is now back up again, kidnappers have renewed their threat to kill all the remaining hostages of the Algerian attack if it continus.

With the sounds of explosions behind him a spokesman for the battalion (Witnesses in Blood) said that Algerian army units were trying to break into the compound by force. The battalion again threatened to kill all the hostages if the Algerian troops entered the compound.

15.25 More on the Irish man mentioned earlier. The Irish foreign ministry has now confirmed he is free and safe. He has been named as Stephen McFaul, aged 36, by Irish broadcaster RTE, and has spoken to his family.

<noframe>Twitter: RTÃ&permil; News - RT&Eacute; News understands the man, named as Stephen McFaul, contacted his family and Irish diplomats in the past hour to say he was safe and well</noframe>

15.18 The Algerian army says it has freed "600 hostages", both foreigners and Algerians, acording to state news agency ANS. Just to reiterate, reports coming from Algeria are wildly varied. The Foreign Office for their part can't confirm if two Brits have been among those freed.

15.10 BP, which part-controls the plant with Norwegian firm Statoil say they have "been informed by the UK and Algerian governments that the Algerian army is attempting to take control of the In Amenas site. They are also bringing a group of non-essential workers out of Algeria.

The situation remains unclear and we continue to seek updates from the authorities.

Sadly, there have been some reports of casualties but we are still lacking any confirmed or reliable information. There are also reports of hostages being released or escaping.

The In Amenas gas field, jointly operated by British oil giant BP, Norway's Statoil and state-run Algerian energy firm Sonatrach

15.07 The Algerian army has freed two Britons, a Frenchman and a Kenyan, according to AFP, citing APS. Blogger Baki Mansour, who was very up-to-date yesterday, also says he has heard the news from local sources.

<noframe>Twitter: Baki 7our Mansour - First group of released hostages are two Brits, a Kenyan and French acc a local source. <a href="http://search.twitter.com/search?q=InAmenas" target="_blank">#InAmenas</a></noframe>

14.55 Con Coughlin, our Defence Editor says that the Algerian crisis is the price we pay for supporting France's mission in Mali.

When David Cameron agreed to provide the French with two of the RAF's massive C-17 transport aircraft last weekend for their military operation against Islamist militants in Mali, he would have had no inkling that it would result in a British oil worker being shot dead and many other hostages being taken in neighbouring Algeria.

But that is precisely what has happened, as Mokhtar Belmokhtar, the head of the al-Qaeda group responsible for the attack, made clear when he said the assault on the In Amenas gas field had been carried out in retaliation for the French operation against al-Qaeda militants in neighbouring Mali.

If this is the case then it raises the question whether Mr Cameron and the rest of his national security team – assuming, that is, that they were consulted – gave serious consideration to the likely consequences Britain would suffer as a result of supporting the mission.

14.52 The Irish foreign minister has revealed that the Belfast resident held at In Amenas was not among the group that escaped from the plant at the outset of the raid but he said that the man had spoken with his family twice shine the hostage crisis had got under way. Eamon Gilmore talked with the Algerian foreign minister this morning.

We talked about the escape of a number of hostages and to the best of his knowledge the Irish citizen was not among those that managed to escape so he’s still being held in captivity.

First of all I conveyed to him, as we have done already to his department and to the Algerian authorities, our concern for the safety of the Irish citizen who is being held captive and for whom we are working for his safe release.

I don’t propose to get into discussion on the operational and the strategic approach that the Algerian authorities are taking on the matter, but I did urge to the foreign minister the necessity for great care, for caution, for subtlety for patience in dealing with this situation. And I emphasised to him that my primary concern , and the concern of the Irish Government is for the safety of our citizen

14.51 Algeria's APS news agency reports that four of the foreign hostages have been freed by the Algerian army. Unfortunately there are no further details, so it is not clear if these are some of the hostages said to have "escaped" earlier, or if these are four of the seven said to still be alive by the Islamists on the inside.

14.34 In a profile of Abu Bara in Al-Akhbar, he is described as an ardent football fan, and particularly devoted to French-Malian one-time Spurs and West Ham striker Frédéric Kanouté.

Born in Algeria in the 70s, he turned to Salafism, the purist form of Islam practised in Saudi Arabia that is shared by many jihadist groups, after serving in the Algerian army. He became prominent for statements supporting the Arab Spring as an attempt to throw off secular dictators such as President Zine al-Abedine Ben Ali in Tunisia, whose people he eulogised. He called for it to be extended to Mauritania, a "French puppet", and Algeria.

He has long-established links with Mokhtar Belmokhtar and co-founded "Witnesses in Blood" with him on December 5 2012, after the falling-out with AQIM. Previously, he had led efforts to win "hearts and minds" of the local population in Azawad, the area of northern Mali seized by al-Qaeda. He is said to speak Arabic, French and some Touareg.

He is short and described as "a fun guy to be around", when he is not in training, when he changes temperament "radically", according to those who know him.

14.30 This is a picture of Abu Bara, the leader of the group on site holding the hostages (13.55) via Al Akhbar

He is not understood to be the mastemind behind the raid however. That dubious honour goes to Mokhtar Belmokhtar, a one-eyed jihadist-cum-gangster. Alex Spillius built up a profile of him yesterday, more of which can be read here.

Mokhtar Belmokhtar

14.26 An Algerian diplomatic source has told French reporter Peter Allen more about the helicopter raid which took place earlier.

Their 4x4 trucks were hit first, and then gunfire was turned on people in the complex... There are numerous casualties but figures cannot yet be confirmed.

14.22 ANI now says that one of the kidnappers has told them the remaining Western hostages include one Brit, two Americans, three Belgians and one Japanese.

14.20 David Cameron will chair another Cobra crisis meeting this afternoon in wake of the Algerian developments.

<noframe>Twitter: Nick Eardley - Government to hold another COBRA meeting this afternoon over <a href="http://search.twitter.com/search?q=Algeria" target="_blank">#Algeria</a> hostage crisis. PM will chair</noframe>

14.17 One of the hostages, identified as a Briton, earlier told Algeria's ANI news that negotiations should take place "to spare any loss of life."

We are receiving care and good treatment from the kidnappers. The (Algerian) army did not withdraw and they are firing at the camp.

14.10 Some hostages are still being held at the plant, according to local sources speaking to Reuters. Some 180 Algerian hostages are understood to have escaped the siege. I should stress though that the information filtering out of Algeria is differing wildly. One source has told Reuters that six foreign hostages and eight of their captors were killed.

13.55 Al Akhbar is now claiming that Abu Bara, leader of the group holding the hostages is among the dead.

The "masked spokesman" of Witnesses in Blood has confirmed this, saying Abu Bara was shot (this from the french version of the site) which rather goes to the Algerian official narrative that this was a ground operation rather than just "bombing".

13.50 Britain has confirmed that an "ongoing operation" is underway at Algeria, while Reuters has said many are dead at the site of the kidnapping.

<noframe>Twitter: Reuters Top News - Many dead at site of Algerian kidnapping: resident <a href="http://t.co/9OKhBdAf" target="_blank">http://t.co/9OKhBdAf</a></noframe>

David Cameron's spokesman said:

The prime minister was updated on the latest situation by the Algerian prime minister in the last hour.

It remains an ongoing situation. The Algerian authorities have confirmed that there is an ongoing operation.

13.28 AFP is now citing an Islamist source saying several killed in Algerian strikes to free hostages.

13.23 Richard Spencer, our Middle East correspondent, writes rather ominously, before news of the dead hostages began to filter in:

Another Arabic news source ElKhabar repeats this claim from Witnesses in Blood but has a denial from an Algerian security source, who says: "You cannot bomb somewhere like this because of the risk to the lives of the hostages."

The source says that the bombing reported was in fact the special forces operation widely referred to (which may have led to the escape of some hostages) which involved putting bodies on the ground. The main purpose of that operation was to "determine the quantity and type of weapons held by the armed group to develop an appropriate plan for storming the site later".

The source also says they are trying to cut communications in the area, partly to prevent remote detonation of any explosive devices.

13.18 Algeria's ANI news agency is now reporting that 34 hostages and 15 kidnappers have been killed by air strikes by the Algerian army. Several Western hostages are understood to be among those dead.

13.13 Al-Jazeera is reporting that 35 hostages have been killed and 15 hostage takers killed as they tried to move from one plant location to another.

<noframe>Twitter: Al Jazeera English - BREAKING: 35 hostages and 15 hostage takers killed in Algeria as they tried to move from one plant location to another.</noframe>

12.48 Tim Ross has more on the extraordinary plans being drawn up in Downing Street for David Cameron to chair a Cobra meeting from overseas. His spokesman said:

The Prime Minister thinks that the right thing for him to do is to be in charge across the entire situation...

He has chaired two Cobras already and will chair it again. Arrangements are in place for him to chair a Cobra from the Hague tomorrow morning, if that is necessary.

12.46 Meanwhile the price of oil has risen to $95 (£59) a barrel, a rise of 42 cents.

"Algeria is not only a leading gas producer; it also produces 1.2 million barrels of crude oil per day," said analysts at Commerzbank in Frankfurt. "Even if supply risks have taken a back seat of late, they may flare up again at any time, resulting in a renewed risk premium on the oil price."

12.44 The BBC has a handy overhead map of the gas facility and the living area, where a number of the hostages are being held.

<noframe>Twitter: BBC News (World) - <a href="http://search.twitter.com/search?q=Algeria" target="_blank">#Algeria</a> hostage crisis MAP: <a href="http://t.co/IxRIH8HE" target="_blank">http://t.co/IxRIH8HE</a> <a href="http://t.co/TS8R3Ua2" target="_blank">http://t.co/TS8R3Ua2</a></noframe>

12.35 Alex Salmond, the First Minister of Scotland, has told MSPs that a number of Scots are among the hostages.

12.30 Tim Ross, our political correspondent, has more on the Algerian government refusing any offers of British help to resolve the hostage crisis, despite "intensive" efforts behind the scenes to persuade them to give the UK a role in the rescue efforts.

Any offer of support would be likely to include the use of special forces and intelligence assets, although the government never officially comments on these activities.

There is frustration in Downing Street that the Algerians are so far insisting they must run the show on their own sovereign territory.

Pressure is being applied to change their minds “at all levels of government”, British sources said, including through the French, who have a closer relationship with Algeria than the UK.

Meanwhile, David Cameron is pressing ahead with his plans to deliver his speech on Europe in Amsterdam tomorrow.

The Prime Minister’s official spokesman said this morning that Mr Cameron thinks it's the “right thing for him to do” to continue with his speech while still being “in charge” of Cobra, hostage situation.

Contingency plans are being made to allow him to chair a meeting of the Cabinet’s emergency Cobra committee from the Hague tomorrow, if necessary.

But there was no real answer over what would happen if, half way through the speech, the government had to decide whether or not to sanction a raid to rescue the hostages.

It is likely that someone else, such as William Hague, would have to take the decision, at which point the PM would no longer be “in charge”.

12.10 Henry Samuel tells me that Francois Hollande, the French president, has ruled out any foreign help for the Algeria situation.

The situation is confused...The best is to let the Algerians free them.

11.59 Is a rescue operation underway? Reuters, via Mauritania's ANI news agency, is reporting that Algerian helicopters have bombed the gas complex.

11.58 Alistair Burt, the Foreign Office minister, has meanwhile let us know that he has cut his trip to Egypt short to help with the crisis.

<noframe>Twitter: Alistair Burt - Cut my <a href="http://search.twitter.com/search?q=Egypt" target="_blank">#Egypt</a> trip short to help on <a href="http://search.twitter.com/search?q=Algeria" target="_blank">#Algeria</a>. All of <a href="http://search.twitter.com/search?q=UK" target="_blank">#UK</a> Government working round the clock. Will make another trip to <a href="http://search.twitter.com/search?q=Cairo" target="_blank">#Cairo</a> soon.</noframe>

11.56 David Cameron's spokesman has said that Britain will consider any request for help with the situation, but has thus far not received any request.

11.53 Coming in from AP now, 20 foreign hostages, including Americans, have now escaped from their captors.

11.41 Here's the breakdown of hostages - bear in mind this is before taking into account those who have reportedly escaped:

- ALGERIA: Hundreds of Algerians worked at the gas plant, but the Algerian media says most have been released.

- NORWAY: Nine Norwegians employees of Statoil are hostages, the company says.

- USA: Seven Americans have been captured, according to the militants. The US says its citizens are involved but has given no numbers.

- BRITAIN: "Several" British nationals are among the hostages, the Government says.

- JAPAN: At least three of the hostages are Japanese, according to the Japanese media.

- MALAYSIA: Two Malaysians being held, the government says.

- IRELAND: A 36-year-old Irish man is among the hostages, according to Ireland's government.

11.39 Henry Samuel, our France correspondent, says that the Algeria attack is a backlash from France's intervention in neighbouring Mali.

This weekend, France was feting its President, François Hollande, for standing up to the Islamist peril in Mali and helping a country on the verge of total implosion...

The move was judged morally right and, analysts say, has abruptly transformed the Socialist president from “Mr Flanby” – a wobbly ditherer – into the country’s strong and decisive commander-in-chief.

But today, two headline-grabbing events have rammed home that the Islamist backlash against his intervention has begun in brutal fashion. They are likely to dent French national solidarity and fuel critics who say France has rushed headlong into a hornet’s nest with dangerously unforeseen consequences at home and abroad.

11.19 William Hague, the Foreign Secretary, speaking in Australia earlier today, said that the crisis was "dangerous and rapidly developing", and admitted it was unclear how many Britons were being held captive. Last night reports put the number of Brits between two to five.

Whatever excuse is being used by terrorists and murderers, there is no excuse. This is the cold-blooded murder of people going about their business.

11.16 Algerian troops have the site surrounded, deepin the Sahara desert. An unidentified hostage, speaking to France 24 television, said prisoners were bing forces to wear explosive vests.

He said that the terrorists were "heavily armed" and, "came in and once there was daylight, grouped us all together’, before forcing a number of expatriate workers to ‘wear explosive belts".

The In Salah Gas (ISG) Krechba Project in the Sahara desert near In Salah, Algeria

11.15 GMT Good morning and welcome to our live coverage of the ongoing Algerian hostage crisis. The latest news is that 15 foreign hostages and 30 Algerians have managed to escape the desert siege of a gas pumping station, according to Algerian TV.

An Algerian security source said the gunmen, who stormed the gas facility on Wednesday, were demanding safe passage out with their captives. The gunmen say they have been holding as many as 41 foreigners as well as scores of Algerians.