Petrobras Makes Discovery in Shallow Santos Basin Waters

Petrobras as the sole concessionaire of block BM-S-40, located in shallow waters in the southern portion of the Santos Basin, announced that after the drilling of the well 1-BRSA-607-SPS (1-SPS-56) has proved the presence of light oil in reservoirs above the salt-bearing layer. Preliminary analyses indicate the oil’s specific gravity is 36 API.

This pioneering well is located some 275 kilometers to the south of the city of Santos, off the coast of the state of Sao Paulo, 235 meters below the water line.

The discovery was confirmed by oil production via a lined well formation test in reservoirs located at a depth of nearly 2,080 meters. The test proved the high flows that are expected for the type of reservoir and oil that were found. Potential production, per well, has been estimated at more than 12,000 barrels per day.

Petrobras will continue the exploratory activities at block BM-S-40, as stipulated by the Concession Agreement, by drilling a new exploratory well for the same purpose. Work is slated to begin in June 2008.

This discovery is greatly important due to the light oil production potential and because the field is located in shallow waters in the southern tip of the Santos Basin.