Petrobras (PBR)

Formation tests prove the potential of Iara

Rio de Janeiro, December 8, 2009 – PETRÓLEO BRASILEIRO S/A - PETROBRAS, announces the completion of the formation tests for well 1-BRSA-618-RJS (1-RJS-656), located in the area informally called Iara, in the block BM-S-11.

The tests proved the area's exploratory potential through of the production of light oil, of approximately 28º API, and allowed the estimated recoverable volume for the Iara area to be maintained between 3 to 4 billion barrels of oil and natural gas, as announced after the drilling that was completed in September 2008.

The well tested happen at of 2,230 meters water depth, at nearly 230 km off the coast of the State of Rio de Janeiro (figure below). Due to the need to relocate the drilling rig, it was not possible to fully complete the test, and another well is expected to be drilled in the area during 2010.

The Consortium, formed by Petrobras (65% - Operator), BG Group (25%), and Galp (10%) will carry on with the exploratory activities and make the investments required to assess the field, pursuant to the Evaluation Plan approved by the ANP.

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department | E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ | Tel.: 55 (21) 3224-1510 / 9947

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