Petrobras Confirms Carcara Potential

Petrobras announced that drilling has been completed in well 4-SPS-86B (4-BRSA-971-SPS), located in block BM-S-8, in ultra-deep waters, in the pre-salt of Santos Basin. This is the third well drilled in the area of the Discovery Assessment Plan (PAD) of 1-BRSA-532A-SPS (Bem-te-vi).

The well, informally known as Carcara, is 144 miles (232 kilometers) off the coast and was drilled at a water depth of 6,650 feet (2,027 meters). Starting at 18,839 feet (5,742 meters) of drilling a significant column was detected containing, at least, 1,545 feet (471 meters) of excellent quality oil - 31 degree API and free of contaminants such as CO2 and H2S – with 1,319 feet (402 meters) in carbonate reservoirs of excellent porosity and permeability. Pressure data indicate that these reservoirs are interconnected.

Due to operational issues, it was not possible to reach the total depth, originally set for 22,966 feet (7,000 meters), and carry out complementary assessment work. Therefore, the well has been temporarily abandoned, which will allow the operation to be resumed in the future, if the consortium wishes to do so.

The various data collected from the well – logs, lateral cores, fluids and pressures - as well as petrophysical analysis, combined with the expertise and experience of Petrobras in formation and long duration tests in pre-salt reservoirs, reinforce the expectation of an elevated oil flow potential in the reservoirs drilled. This will be confirmed with the ongoing exploratory activities in the area, which includes drilling an extension well in 2013, at which time it will be possible to assess the productivity of the reservoirs through a formation test.

Carcará is expected to produce its first oil in 2018, with the prior drilling of development wells throughout 2016-2017, in line with the provisions laid out in Petrobras's 2012-2016 Business Plan and Strategic Planning for 2020.

Petrobras is the operator of the consortium (66%) in partnership with Petrogal Brasil (14%), Barra Energia do Brasil Petróleo e Gás Ltda. (10%) and Queiroz Galvão Exploração e Produção S.A. (10%).

In light of the Carcará potential, the consortium requested the National Petroleum, Natural Gas and Biofuels Agency (ANP) for an extension in the deadline of the Discovery Assessment Plan (PAD) of Bem-te-vi, where the well is located, which was due to expire at the end of 2012. The consortium awaits ANP's resolution on the matter.