Brazilian state-run company Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) announced the discovery of light oil in the Cretaceous reservoirs, off-shore Espírito Santo Basin. The new well is expected to have an important bearing regarding further exploration activity in the prolific basin.
Drilled at a water depth of 1,900 meters, the 1-BRSA-926D-ESS (1-ESS-205D) well, informally known as Brigadeiro, is located 115 kilometers off the coast of the Espírito Santo state. Petrobras has a 65% operating interest in block BM-ES-23 (where the discovery was made), with the other partners being Shell Brasil Petróleo Ltda (20%) and Inpex Petroleo Santos Ltda (15%).
After completion of drilling two other wells in the concession, the consortium will submit an Evaluation Plan to Brazil's national petroleum agency, ANP for delimitation of the discovered resource.
In a separate development, Petrobras confirmed the discovery of oil and gas in three deepwater Hadrian fields in the Gulf of Mexico. The wells -- in the Keathley Canyon concession -- are estimated to hold approximately 700 million barrels of oil equivalent in combined reserves.
Headquartered in Rio de Janeiro, Petrobras is involved in the exploration, exploitation and production of oil from reservoir wells, shale and other rocks, in refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
We maintain our long-term Neutral rating on the stock, accounting for the company’s strong pipeline of development ventures, impressive exploration successes along with new investments and acquisitions, partially offset by a volatile macro backdrop, project cost overruns and operational hindrances. Petrobras faces strong competition from its peer ExxonMobil Corporation (XOM - Free Report) .