In accordance with the terms of article 248 of the Portuguese Securities Code, Galp Energia, SGPS, S.A. (“Galp Energia”) hereby discloses the following information:

The contractor group for BM-S-11 in ultra deep water of Santos Basin in Brazil, including Petrobras, BG Group and Galp Energia, proved the existence of light oil in the pre-salt reservoirs with an API gravity around 30º.

The block BM-S-11 includes two exploratory areas. In the larger area the first well 1-BRSA-369A-RJS (1-RJS-628A), informally called Tupi, has resulted in a discovery announced on July 11, 2006, which evaluation plan, approved by the National Petroleum, Natural Gas and Biofuels Agency (“ANP”) is being carried out (orange colour in the attached map).

The new exploration well, denominated 1-BRSA-618-RJS (1-RJS-656), but informally known as Iara is situated on the smallest area (green colour in the attached map), 230 kilometres from the coast of Rio de Janeiro in a water depth of 2,230 meters. The well is still being drilled in search of deeper prospects.

This discovery was proved through light oil sampling by a Modular Dynamic Testing (“MDT”) in reservoirs situated at a depth of nearly 5,600 meters and was announced to ANP today.
After the conclusion of the well, the contractor group will carry on the activities and investments needed to assess the dimension of this reservoir, as well as the characteristics of the oil bearing reservoirs. This assessment will be performed through a Discovery Evaluation Plan that will be sent to ANP, according with the terms of the Concession Agreement.

The contractor group for BM-S-11 includes Galp Energia (10%), Petrobras (operator, 65%) and BG Group (25%).

At Santos Basin, a basin with high exploration potential, Galp Energia also holds stakes in three additional blocks: BM-S-8 (14%), BM-S-21 (20%) and BM-S-24 (20%).

Santos Maritime Basin - Brazil

Galp Energia, SGPS, S.A.