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BG Group finds more oil off Brazil's coast

April 12, 2011 at 9:56 AM

READING, England, April 12 (UPI) -- A well off the coast of Brazil could produce as much as 50,000 barrels of oil equivalent per day, a British energy company said Tuesday.

BG Group announced that testing at its Guara Norte well located off the coast of Brazil recovered light oil. Production potential from the well located in the Santos Basin is estimated at around 50,000 barrels of oil equivalent per day, the company added.

The well was drilled about 190 miles off the coast of Sao Paulo state in nearly 7,000 feet of water. The results from the well "reaffirm the excellent reservoir characteristics of this discovery," the British energy company added.

BG Group holds a 30-percent stake in the well along with operator Petrobras with a 45-percent share and Italian energy company Repsol with a 25-percent stake.

Repsol along with the partners said in January that it made a significant oil discovery about 170 miles off the coast of Sao Paulo in the same basin.

The Spanish energy company said it found an oil reservoir about 650 feet thick containing medium-grade crude oil.

"Brazil's offshore boasts one of the world's fastest-growing oil and gas reserves," said Repsol in a statement.

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