This excerpt taken from the PBR 6-K filed Sep 25, 2008.
Important Discovery of Gas and Light Oil in the Pre-Salt Layer Confirmed
(Rio de Janeiro, September 24 2008) PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that the consortium formed by Petrobras (80% - Operator) and Galp Energia (20%) to explore block BM-S-24, in ultra-deep waters in Santos Basin, completed the drilling of well 1-BRSA-559A-RJS (1-RJS-652A), which confirmed the existence of a large natural gas and light oil reservoir in the pre-salt layer. This drilling confirmed the discovery that was already announced on January 21 2008.
The well, known as Jupiter, is located 290 km off the coast of the State of Rio de Janeiro and 37 km east of the Tupi area, at a water depth of 2,187 meters (see the figure below). The final depth that was reached was 5,773 meters from the surface of the sea.
The well, which had its drilling interrupted for operational reasons in January, was deepened and proved the continuity of the natural gas and light oil reservoirs, in addition to a high content of Carbon Dioxide (CO2). Several oil samples were collected and are currently under analysis in Petrobras Research Center (CENPES) in order to better assess the relative percentages of its components. When in production, the CO2, identified preliminarily, will not be discarded to the atmosphere, rather re-injected, contributing to increase the oil Recovery Factor in these reservoirs.
The Jupiter discovery, which proved the significant thickness of the porous reservoirs, was communicated to the ANP (National Petroleum Agency) today. It will be possible to estimate the oil and gas volumes after the fluid samples collected from this well are analyzed and new wells are drilled.
The Consortium will give continuity to the activities and the investments required to verify the dimensions and the characteristics of the reservoirs. An Evaluation Plan will be submitted to the ANP, as provided for in the Concession Agreement.
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: September 24, 2008
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