Petrobras Strikes Black Gold in Colombia's Balay Block



RIO DE JANEIRO (Dow Jones), Mar. 11, 2010

Brazilian state-run energy giant Petroleo Brasileiro said Thursday that it had discovered oil at a well in Colombia.

The discovery was made in the Balay inland block. Petrobras holds a 45% operating stake in the block via its Petrobras Colombia Limited unit. Cepcolsa holds a 30% stake, while Petroamerica Oil Corp. has a 15% share and Sorgenia E&P Colombia B.V. holds the remaining 10%.

Petrobras said that the Balay-1 well showed the presence of oil rated at 28 degrees on the American Petroleum Institute's rating scale. Initial flow tests showed production levels at about 1,314 barrels a day.

The well was drilled to a depth of 4,652 meters, Petrobras said.

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