This excerpt taken from the PBR 6-K filed Sep 29, 2008.
Petrobras makes a second light oil discovery in the Santos Basin south pole
(Rio de Janeiro, September 26, 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 it has confirmed the presence of oil following the drilling of well 1-BRSA-658-SPS (1-SPS-57), located in the south of the Santos Basin, in sandstone reservoirs. This find substantiates the good light oil potential in the shallow offshore sections of the Basin.
The 1-BRSA-658-SPS well is located in the S-M-1289 block, part of the BM-S-40 concession, in which Petrobras holds a 100% interest. This block is situated about 200 kilometers off the coast of the state of São Paulo in a water depth of 274m (see below). The block is also 9.3 kilometers from the first find made there by well 1-SPS-56, in the Tiro pioneering prospect, and announced in May of this year.
The reservoirs, which have been discovered, are of the sandstone type and located at an approximate depth of 2,060m and similar to recent finds by well 1-BRSA-607-SPS (1-SPS-56). Productivity of the reservoirs is to be assessed with immediate effect through a Well Formation Test.
The size of the discoveries made by these wells will only be established following the conclusion of the Evaluation Plan to be submitted to the oil industry regulator, The National Petroleum Agency (ANP), in accordance with the BM-S-40 concession contract. While still at a preliminary stage of evaluation, based on the two wells and anomalies in the seismic data, the Company estimates recoverable volumes of oil in this area at approximately 150 million barrels of oil equivalent.
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 26, 2008
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