Petrobras confirms light oil potential in Tupi

Petróleo Brasileiro S.A. - Petrobras announces that the drilling of the seventh well in the Tupi area confirmed the light oil potential in the pre-salt reservoirs, located in ultra-deep Santos Basin waters.

The new well, called 3-BRSA-821-RJS (3-RJS-674) and informally known as Tupi Alto, is located in the Tupi Evaluation Plan area, at a depth of 2,111 meters below the water line, nearly 275 km of the coast of Rio de Janeiro, and 12 km northeast of discovery well 1-RJS-628 (1-BRSA-369).

The well was drilled in a higher structural position than the other wells in Tupi, and proved the discovery of light oil via a cable test. The sample obtained in the test presented lighter oil (about 30 degrees API) than the average of the oils found in the other Tupi wells (about 28 degrees API).

The information obtained from this well and from the other ones that have already been drilled in the area reinforces the estimations of the potential of 5 to 8 billion recoverable barrels of light oil and natural gas in the pre-salt reservoirs of the Tupi area.

The Consortium, formed by Petrobras (65% - Operator), BG Group (25%), and Galp Energia (10%), to explore block BM-S-11 will carry on with the activities and investments called for in the Evaluation Plan which was approved by the ANP and foresees the drilling of other wells until the declaration of commerciality, which is expected to be made in December 2010.

This announcement is not an offer of Petrobras shares. Petrobras shares may not be offered or sold in the United States absent registration or an exemption from registration, and Petrobras currently intends to register the proposed offering in the United States. Any public offering of Petrobras shares will be made by means of a prospectus containing detailed information about Petrobras and the offering.