BG Group has reported that the Iara Horst well (3-BRSA-891A-RJS) in the Santos basin offshore Brazil has encountered good quality oil in a thick reservoir section.

The well, located in the BM-S-11 concession, was drilled at a water depth of 2,279 metres, about 230 kms off the coast of Rio de Janeiro.

Initial results from Iara Horst have demonstrated superior reservoir characteristics compared with the original discovery well, which is located around 8 kms away.

The discovery is currently held under the Iara Evaluation Plan in block BM-S-11.

BG Group holds a 25% interest in the BM-S-11 concession, while Petrobras and Petrogal hold 65% and 10% interest, respectively.