Petrobras Makes Discovery in Reconcavo Baiano

Petrobras has made a light oil find (an estimated 42 degree API) in the Reconcavo Baiano Onshore Basin, following the drilling of exploratory well 1-SRC-2D-BA in the municipality of Esplanada. While further drilling will be required to evaluate reserves, preliminary estimates indicate recoverable volumes of 4.6 million barrels. The discovery is part of the "Formação Água Grande" reservoir and consists of 27 meters of oil saturated sandstone at a minimum depth of approximately 800 meters.

In addition to being an oil of excellent quality, the discovery attests the correctness of Petrobras' strategic decision to revisit mature basins where exist concrete opportunities for enhanced production and an increase in the company's proven reserves.

The new find is located in the BT-REC-11 exploratory block (BT stands for Onshore Basin, REC, Reconcavo and 11, the block number), acquired during the fifth bidding round held in August 2003. It is the result of Petrobras' compliance with the minimum exploratory program signed in November 2003 with the National Petroleum Agency.

The first well drilled in the vicinity of Santa Rita de Cássia, in the state of Bahia, was vertical and proved to be dry. The company drilled this second well at an angle (with the drill head being positioned at the same entry point as the first exploratory well) and discovered oil.