El Paso Makes Significant Brazil Discoveries

El Paso Exploration & Production Company

El Paso says that it has drilled two successful exploratory wells in the Camamu Basin, offshore Brazil. The wells extended the southern limits of its Pinauna project.

The original Pinauna Field tested oil in three exploratory wells in the 1980s. The company previously estimated the total resource of the original field to be approximately 37 million barrels of oil equivalent (MMBOE). Currently, 12 MMBOE from this field are included in the company's proved reserves.

As a result of information from the current discoveries, the company estimates the total resource of the Pinauna Field to be up to approximately 90 MMBOE. El Paso plans to refine its estimates of the total resource following commencement of production. El Paso currently has a 100% working interest in this project, and is in the process of marketing up to a 50% non-operating interest.

"The results of these exploration wells add significant resource and production potential for El Paso," said Brent Smolik, president of El Paso Exploration and Production Company. "This is an exciting project, and these results demonstrate our ability to conduct successful exploration activities in Brazil, as well as the scale of opportunities that we are pursuing."

El Paso drilled the Cacau-1 well (1-ELPS-17 DA) to a total depth of 2,889 meters. A seven-meter section of the upper Jurassic Sergi formation was cored, and the well has been confirmed as an oil discovery. The Acai well (1-ELPS-17 DA) was drilled to a total depth of 2,915 meters, and tested gas and condensate from the top 70 meters of a potential 136-meter hydrocarbon interval. El Paso is currently evaluating the test results and assessing development options.