article, page-21

mmmmm.methinks they may have struck O PAULO (Dow Jones)--Brazil's government-run oil company, Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, on Tuesday said it has confirmed the presence of light oil in a well drilled to the south of the Santos basin.

The well is located about 280 kilometers off the coast of the state of Sao Paulo, in a water depths of 400 meters, and the reservoir lies a further 2.2 kilometers below the seabed, Petrobras said.

The discovery lies above the so-called pre-salt area where recent giant discoveries made off the coast of Brazil, Petrobras said. The company continues to drill with the aim of "researching other deeper objectives, still in the post-salt section," Petrobras said.

Petrobras owns 100% of the BM-S-41 Concession, where the latest discovery was made, but is in the process of transferring a 20% stake to Australia's Karoon Petroleum and Gas, the statement said.

The oil was discovered in sandstone reservoirs similar to those found in the Tiro and Sidon reservoirs, which lie some 15 kilometers away, Petrobras said.


oil