Okay I know alot of you may have heard about the BG&E sequel rumors from Jeux Expo, but what alot of you may not have heard about is Michael Ancels recent interview with Nintendo Power magazine in which he says-

That he is currently 'working on a game that means alot' to him

And the foundation of that game is 'immersion and a sense of incredible journey'

And that he hopes that JADE will 'continue to keep her values and personality traits'

To me this suggests he may be working on BG&E2 because I think it would mean a lot to him and the foundation of the game is immersion etc. Also its a bit strange that the subject of Jade would come up. Still I can understand that some people will be skeptical and theres no garantee that he is actualy talking about BG&E. I dont actually have the interview but theres a link to a site that describes the interview here

http://gonintendo.com/?p=28652

Other than this there is more information on weezer6558's post that suggests that a game industry blog called Game Set Watch has discovered that Ubisoft's montpelier studio is working on the sequel but again this may not be true. You can find the post here

http://forums.ubi.com/eve/forums/a/tpc/f/908103432/m/3821067406