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Petrobras Drills New Well at Pre-Salt Block in the Campos Basin

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Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) recently launched a new drilling campaign in Brazil’s largest pre-salt region to assess a promising discovery of significant oil reserves.

Petrobras initiated drilling operations at well 3-BRSA-1398-RJS in the Alto de Cabo Frio Central block of the Campos Basin. The well, located at a water depth of 2,276 meters, is being drilled using the West Polaris drillship. The activity, reported by the National Petroleum Agency (ANP), marks a significant step in Petrobras’ continued efforts to expand its presence in Brazil’s pre-salt region.

An Insight Into the Alto de Cabo Frio Central Block

The Alto de Cabo Frio Central block was acquired by Petrobras in October 2017 during the 3rd ANP bidding round. It operates the block with a 50% stake, sharing ownership equally with BP p.l.c. (BP - Free Report) (50%). This strategic partnership underscores the growing importance of collaboration in offshore exploration, particularly in deepwater and ultra-deepwater plays. The block, located in the Campos Basin, had the largest acreage in the bid. It is presumed that Alto de Cabo Frio Central holds around 558 million barrels of recoverable resources and will presumably start production in 2032.

Potentials of the Block Discovered by PBR

Petrobras, currently carrying a Zacks Rank #3 (Hold), has already made progress in evaluating the block’s potential. In July 2022, the company completed the drillstem test of a pioneer well (1-BRSA-1383A-RJS) in the region. This test provided valuable insights, confirming the presence of a thick pre-salt carbonate reservoir with strong productivity. Additionally, oil samples were collected and analyzed, further highlighting the commercial viability of the block.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

As Petrobras advances its drilling activities, the new well in Alto de Cabo Frio Central represents another crucial step in unlocking the vast resources of Brazil’s pre-salt reserves.

Key Picks

Investors interested in the energy sector might look at some top-ranked stocks like Repsol, S.A. (REPYY - Free Report) and Prairie Operating Co. (PROP - Free Report) .

Repsol explores, develops and produces crude oil products and natural gas, and transports petroleum products, liquefied petroleum gas and refined petroleum. REPYY’s expected EPS (earnings per share) growth rate for the next year is 17%, which aligns favorably with the industry growth rate of 13.10%.

Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2024 earnings indicates 81.19% year-over-year growth.

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