Stock Update (NYSE:PBR): Petroleo Brasileiro Petrobras SA (ADR) Announces New Well Confirms Light Oil Potential In Carcará Area At Santos Basin “Pre-salt”

Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) informs that the drilling of the second well in Carcará area (Block BM-S-8), located at Santos Basin´s ultra-deep waters, confirmed the light oil potential in pre-salt’s reservoirs.

The well 3-SPS-105 (Petrobras nomenclature), informally known as Carcará North, is located in the area of Discovery Evaluation Plan of the discovery well 4-SPS-86B (4-BRSA-971B-SPS – Carcará), 4.6 km north of this well, at water depths of 2.072.

The new well has proved the presence of good quality oil (31º API), also in carbonate reservoirs of excellent quality, located below the salt layer, at 5,820 meters depth.

The well, still under drilling inside the oil column, has reached 6.178 meters depth so far, finding a significant oil column of 352 meters in continued and connected reservoirs. The pressure data obtained in such showed that it is the same accumulation of the discovery well.

A formation test is expected at the end of the drilling to evaluate the reservoirs´ productivity. This year the consortium also expects the resume of the drilling of well 3-SPS-104DA (3-BRSA-1216DA-SPS –Carcará Northwest), continuing the scheduled operations under the Discovery Evaluation Plan.

The Discovery Evaluation Plan of Carcará, approved by Brazil´s Nacional Petroleum, Natural Gas and Biofuels Agency (ANP) is expected to finish by March 2018.

Petrobras is the operator of the consortium (66%), in partnership with Petrogal Brasil (14%), Barra Energia do Brasil Petróleo e Gás (10%) and Queiroz Galvão Exploração e Produção S.A. (10%). (Original Source)

Shares of Petrobras opened today at $8.59 and are currently trading down 2.08% at 8.46. PBR has a 1-year high of $20.94 and a 1-year low of $4.90. The stock’s 50-day moving average is $9.18 and its 200-day moving average is $7.70.

On the ratings front, Petrobras has been the subject of a number of recent research reports. In a report issued on April 26, Morgan Stanley analyst Bruno Montanari downgraded PBR to Sell, with a price target of $8.50, which represents a slight downside potential from current levels. Separately, on April 24, Cowen’s Asit Sen maintained a Hold rating on the stock and has a price target of $11.50.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Bruno Montanari and Asit Sen have a total average return of 5.1% and -10.3% respectively. Montanari has a success rate of 71.4% and is ranked #2013 out of 3610 analysts, while Sen has a success rate of 0.0% and is ranked #3204.

Petroleo Brasileiro SA Petrobras operates as an integrated oil & gas company in Brazil. Its business is structured into segments such as Exploration & Production; Refining, Transportation & Marketing; Distribution; Gas & energi; Biofuel; & International.

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