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, concluded the drilling of the Iara well and proved the existence of oil in the pre-salt reservoirs. The estimated volumes of recoverable oil and natural gas for this discovery are between 3 and 4 billion barrels (green colour in the map).

At the time of the announcement of the oil discovery on August 7, 2008 in Iara, the well was still being drilled in search of deeper prospects. Those prospects were reached and the quality and porosity thickness of the oil bearing reservoirs were better than initially expected. The discovery announced today to the National Petroleum, Natural Gas and Biofuels Agency (“ANP”) was confirmed by a cable test and revealed the existence of oil, with API gravity between 26º and 30º, in an area of 300 km2, seismically well defined. The data gathered, along with the knowledge of the pre-salt already obtained allowed to estimate the above mentioned volume.

The block BM-S-11 includes two exploratory areas. In one of those areas the first well known as Tupi was drilled, which resulted in the discovery announced on July 11, 2006, with estimated volumes of recoverable oil and natural gas between 5 to 8 billion barrels (orange colour in the map). Its evaluation plan, approved by the ANP is currently in execution.
The exploration well denominated Iara is situated north of Tupi (green colour in the map), 230 kilometres off the coast of Rio de Janeiro in a water depth of 2,230 meters. The final well’s depth was 6,080 meters.

The contractor group will carry on the exploration activities and investments in this area through a Discovery Evaluation Plan that will be sent to ANP, according with the terms of the Concession Agreement, to better qualify the reservoir.

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