QGEP Strikes Oil Offshore Brazil

Brazil’s QGEP has made an oil discovery off the coast of Bahia state in Brazil.

QGEP Participações S.A.  today announced that its wholly owned subsidiary Queiroz Galvão Exploração e Produção S.A. (QGEP)  filed a Notice of Discovery with the ANP (Agência Nacional do Petróleo, Gás Natural e Combustível) at well 1-QG-5A-BAS, located at Block BM-J-2 in the Jequitinhonha Basin. QGEP is the operator of the block with a 100% working interest.

Located 20 km off the coast of Bahia state in Brazil, well 1-QG-5A-BAS targets the Alto de Canavieiras (Jeq#1) prospect in the pre-salt section. The discovery was determined after the identification of anomalies in the gas detector and oil shows in cuttings, combined with the interpretation of Logging While Drilling (LWD) profiles. After the final logging of the well and the performance of formation tests, the Company expects to have the necessary data to determine the potential of this discovery.

Drilling activities are underway and are expected to be concluded by the end of this quarter, when the final depth of the well will be reached.