Manati Development Well Encounters Gas

Manati Gas Field
(Click to Enlarge)
Drilling of the Manati development well #1 has now been concluded and the Logs indicate a gas reservoir with the thickest continuous gross pay drilled to date in a single well in Brazil.

The logs show a gross pay of 327 meters in the Sergi formation, of which around 80% is considered net pay. This represents 140 meters more compared with the discovery well and is very encouraging in respect to the recoverable reserves in the Manati field. In addition this well encountered 15 meters of gross pay in the Rio das Contas Formation above the main reservoir. This secondary reservoir is not included in the present Company reserve report. The remaining 6 development wells could however still show a different field-wide picture.

The Partners decided to cut 9 cores inside the Sergi reservoir to better evaluate physical parameters. This and the rig performance have delayed the drilling of this first well.

On the second Manati development well the Operator encountered a hole stability problems and a side track is presently in progress.

An important milestone was reached on May 9th as the main production module was successfully mated with the offshore jacket previously installed on the field.

Overall, the Manati development project is proceeding to accomplish a 3Q 2006 production start-up.

Partners in Manati are Queiroz Galvao Perfuracoes with 55%; Petrobras with 35% and Norse Energy with 10%.

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