Brazil Oil Regulator Says Franco Well Could Produce 50,000 B/D

RIO DE JANEIRO (Dow Jones)--Brazil's National Oil Regulatory Agency, known as ANP, said it concluded its first formation test at the Franco well, which may have potential to produce 50,000 barrels a day.

Franco, which is the name given to the Brazilian state's 2-ANP-1-RJS well, has light oil measuring about 30 degrees API, ANP said in a statement Monday.

Initial studies by independent auditors indicate oil reserves in the deep-sea Franco well could top initial estimates of 4.5 billion barrels, according to earlier-reported ANP statements.

The ANP hired Gaffney Cline & Associates to assess reserves in the Franco and Libra areas under the subsalt layer of Brazil's Santos basin.

The Franco area is owned by the government and may be incorporated into a state plan to capitalize Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, under which the company receives the rights to produce up to 5 billion barrels of crude oil from government-held deepwater blocks in return for shares.

The original topic : black gold lifeline