Shell Hits in Santos Basin

Shell has made a discovery in block BS-4 in the Santos Basin area offshore Brazil. The appraisal well has confirmed earlier signs of hydrocarbons, and points to reserves of between 300 million and 500 million barrels of 15 degree API oil. The BS-4 appraisal well was drilled by Stena Drilling's semisubmersible, Stena Tay in approximately 5,100 feet of water and the well reached a total depth of 9,842 feet.

Shell said the results of this well were encouraging and they might drill another appraisal well on this field. A second exploration well has already been approved for this block next year.