Barra Energia Announces the Successful Results of the First Horizontal Producer Well of the Atlanta Field

07/02/2014

Barra Energia announced the conclusion of the drilling and testing of the well 7-ATL-2HP-RJS, the first 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 with 30% participation and which is the block operator, and Óleo e Gás Participações with the remaining 40%.

Located in approximately 1,500m of water depth the well was drilled to a total measured depth of 3,502m. A horizontal section of 750m was successfully drilled through the oil zone, which consist of high quality Eocene sandstone reservoirs with average porosity of 38%. The horizontal part of the well was then cased with screens and gravel packed, which will maximize oil productivity while preventing the movement of reservoir sand into the borehole and production equipment.

A Drill Stem Test (DST) was then successfully performed with two different flow periods, the first one more restricted to collect bottom hole samples of oil and gas, and the second one with less restrictions. Flow rates of 1,250 barrels of oil per day (bopd) and over 5,000 bopd were obtained, respectively. These flow rates were subject to considerable constraints associated with the DST set up and limited capacity of the surface facilities, such as storage and short term flaring limitations and low capacity electrical submersible pump (ESP).

Furthermore, the test confirmed a Productivity Index (PI) higher than the one expected from reservoir simulation studies. These excellent results indicate that the production rates of this well, once brought onstream under normal operation conditions and equipped with a full capacity ESP, will be nearer the upper limit of the originally estimated productivity range of 6,000 to 12,000 bopd.

In view of the exceptionally good results of this well the partnership will proceed to the next phases of development, including the drilling of additional production wells and the tender for a Floating, Production, Storage and Offloading (FPSO) facility.

“This result once again demonstrates that Barra Energia is pursuing the correct business strategy, positioning itself in a niche of opportunities suitable for well capitalized and technically capable independent oil companies”, said João Carlos de Luca, Executive Chairman of the company. Renato Bertani, CEO, added that “the Atlanta field development poses some unique technological and operational challenges due to its heavy oil characteristics and the unconsolidated nature of the Eocene sandstone reservoirs; teamwork in cooperation with the operator and innovative solutions proved to be the right formula for this very successful well, and will continue to do so in the next development phases”.

For further information please contact the Institutional Relations 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.