Barra Energia announces conclusion of the Atlanta Field’s second high productivity horizontal development well

07/05/2014

Barra Energia announced the conclusion of the drilling and testing of the well 7-ATL-3H-RJS, the second successful horizontal oil producer of the Atlanta Field development. The Atlanta Field is one of the two oil accumulations under development in Block BS-4, the other being the Oliva Field. Barra Energia holds a 30% interest in the block, in partnership with Queiroz Galvão Exploração e Produção S.A. with 30% participation and which is the block operator, and OGX Petróleo e Gás S.A. with the remaining 40%.

Located in approximately 1,500m of water depth the well was drilled to a total measured depth of 3,560m. A horizontal section of 835m was successfully drilled through the oil zone, which consists of high quality Eocene sandstone reservoirs with very high porosity and permeability. The horizontal part of the well was then cased with screens and gravel packed.

A Drill Stem Test (DST) performed in this well confirmed similar, if not higher, productivity rates than those established with the first production well recently completed, given the operational constraints existing in both well tests. Even more significantly, the DST in well 3H was successfully conducted with the electrical submersible pump (ESP) located at the sea bottom rather than at the reservoir level. If this technology is adopted for the full development of Atlanta field, this option can provide significant operational cost reduction. This result establishes that the two horizontal development wells drilled so far will flow at the upper limit of the originally estimated productivity range of 6,000bopd to 12,000bopd per well. The partnership is currently tendering for an FPSO aiming at starting production, depending on the arrival of the vessel on the field location, towards the end of 2015.

“This result once again demonstrates that Barra Energia’s strategy, anchored in developing innovative and technologically advanced solutions in conjunction with its partners and Operators, is advancing towards bringing complex and challenging oil accumulations onstream”, said João Carlos de Luca, Executive Chairman of the company. Renato Bertani, CEO, added that “the Atlanta field development poses unique challenges due to its heavy oil characteristics and the unconsolidated nature of the Eocene sandstone reservoirs; we are very pleased that this second consecutive horizontal well has demonstrated exceptionally good results, confirming the production potential and economic attractiveness of this post-salt heavy oil accumulation”.

For further information please contact the Institutional Affairs Manager of Barra Energia:

Danilo de Luca
Phone: (021) 3037 2772
E-mail: danilo.deluca@barraenergia.com.br
www.barraenergia.com.br

About Barra Energia

Barra Energia do Brasil Petróleo e Gás Ltda is a Brazilian company focused on petroleum exploration and production in the Brazilian sedimentary basins. The company is led by Brazilian professionals highly experienced in the oil industry, both in Brazil and abroad, with main financial support from the private equity firms First Reserve and Riverstone. The primary focus area of Barra Energia is offshore, including the Santos and Campos basins and the emerging pre-salt play.