QGEP discovery at 1-QG-5A-BAS well

August 22, 2013

QGEP Participações S.A. announced that its wholly-owned subsidiary Queiroz Galvão Exploração e Produção S.A. (QGEP) filed a Notice of Discovery with the ANP (Agência Nacional do Petróleo, Gás Natural e Combustível) for well 1-QG-5A-BAS, located in block BM-J-2 in the Jequitinhonha Basin off Brazil. QGEP is the operator of the block with a 100% working interest.

Located 20 km off Bahia state, the well targets the Alto de Canavieiras (Jeq#1) prospect in the pre-salt section. The discovery was determined after gas-detector anomalies and oil shows in cuttings, combined with the interpretation of logging-while-drilling profiles. After the well’s final logging and the formation tests, QGEP expects to have the necessary data to determine the discovery’s potential.

Drilling activities are underway and are expected to be concluded by the end of this quarter, when the well’s final depth of 4700m will be reached.



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