Petrobras announces that the formation tests carried out for the second Tupi area well, the 3-BRSA-496-RJS (3-RJS-646), have been wrapped-up and proved the Southwardly extension of the light oil discovery (28o API) by pioneer well 1-BRSA-369A-RJS (1-RJS-628A), in deep Santos Basin waters.

These tests confirmed the light oil discovery made via the pioneering well, as announced to the market on July 11 2006. The Tupi area is located in Block BM-S-11, which is operated by Petrobras (65%) in a consortium with BG Group (25%) and Petrogal (10%) as partners.

In a clarification made last August 29th, Petrobras informed the drilling procedures for this second well were concluded on June 24, but that the company would only have more information after the tests had been finished, which occurred now.

The second well is located 9.5 km southeast of the pioneering discovery well, at a depth of 2,166 meters, some 286 kilometers off the southern coast of the city of Rio de Janeiro (view the figure below).

The test carried out in the well suggests a production of some 2,000 barrels of oil and 65,000 cubic meters of natural gas per day, with flow being limited due to the test's operating installations and for security reasons.

The Consortium will give continuity to the activities and investments foreseen in the Assessment Plan developed for this light oil (28º API) field, as approved by the NPA on 02/27/2007. The main purpose of these activities is to check the oil- and gas-bearing reservoir's dimensions and characteristics in order to ensure the economic viability of developing an oil and gas production project in this block. More conclusive data about the discovery's potential will only be known after the other assessment process phases have been finalized.