New Discovery of Good Quality Oil in Rights Transfer Area

Petrobras announces that oil has been discovered in the Santos Basin pre-salt area known informally as Florim, following the drilling of a sixth well since the Rights Transfer Agreement was signed.

The well, 1-BRSA-1116-RJS (1-RJS-704), is located at a water depth of 2,009 meters, 206 km off the coast of Rio de Janeiro state and the presence of good quality oil (29º API) has been confirmed in carbonate reservoirs of excellent quality just below the salt layer.

Drilling has reached a depth of 5,498 meters and will continue down as far as the depth specified in the Rights Transfer Agreement of around 6,100 meters.

When drilling is complete, a formation test will be carried out to assess the productivity of the reservoirs, in line with the activities and investments in the Rights Transfer Agreement's Mandatory Exploratory Program.

• According to the agreement, the exploratory phase should be concluded by September 2014, at which time a statement on the commerciality of the area will be issued.