Brazilian state controlled energy firm
Petroleo Brasileiro S.A.
) has affirmed the presence of 1,437-foot column of hydrocarbons in
the well - 3-BRSA-1053-RJS (3-RJS-699) - in the pre-salt deposit of
Santos Basin. The discovery of the well was first announced in
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PETROBRAS-ADR C (PBR): Free Stock Analysis
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The company also declared that oil recovered from the carbonate
reservoirs below the salt layer of the well exhibit a superior
light quality with a gravity of 28 degree to 30 degree on the
American Petroleum Institute (API) scale.
Drilled at a depth of 19,596.5 feet in stratigraphic horizon line -
the well is unofficially known as Franco SW. It is located about
130.5 miles off the coast of Rio de Janeiro and 10.6 miles to the
south of the discovery well 2-ANP-1-RJS (Franco).
This is the fourth well explored in the Transfer of Rights area
that covers an acreage known as Sul de Guara. Petrobras is
permitted to generate up to 3 billion barrels of oil equivalent
from the region.
Earlier, in 2010, Petrobras entered into the Transfer of Rights
Agreement with the Brazilian National Oil, Natural Gas and Biofuels
Agency and obtained the authority to explore the region under the
Mandatory Exploratory Program. The company plans to complete the
ongoing exploration activities by September, 2014.
Headquartered in Rio de Janeiro, Petrobras primarily engages in
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, as well as in other energy-related activities.
Petrobras - which recently entered into a $1.1 billion (R$2.2
billion) subsea contract with GE Oil & Gas, a unit of
) - retains a Zacks #4 Rank, which translates into a short-term
Sell rating. Moreover, considering the fundamentals, we are
maintaining a long-term Underperform recommendation on the stock.