(Rio de Janeiro, September 20, 2005). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that it has found gas reserves in the first well operated by its subsidiary Petrobras America in deep waters in the American Gulf Of Mexico, in an extension of the Cottonwood discovery, situated in the Garden Banks 244 Block.
The well was drilled in water 640 meters deep by the drilling unit Lorris Bouzigard, contracted by the Company for this operation. High quality gas reserves were found, with a total thickness of 40 meters. The result confirms the company strategy for the block, where other wells drilled by the previous operator discovered only non-commercial volumes of oil and gas.
With the confirmation of the extension of this gas field, Petrobras America intends to implement
an accelerated development program for these reserves, aiming to begin production by the start
of 2007. Petrobras has an 80% participation in this discovery and is the block operator. Mariner Energy Inc. is the other partner, with the remaining 20%.
The Garden Banks site is one of the four focus areas selected by Petrobras with precedence for its exploratory activities in the American sector of the Gulf of Mexico. The other areas of interest are the ultra-deep waters of the Gulf, ultra-deep gas objectives in shallow waters and the west portion of the region. According to the Business Plan for 2006-2010, recently announced by Petrobras, the investment total to be allocated by the company in the American Gulf of Mexico, during this period, will reach US$ 1.5 billion.