Brazil is the world's 15th-largest oil producer, with proven reserves of 11.2 billion barrels. In 1997, the country's government began creating a competitive, liberalized energy industry environment with the establishment of the National Agency of Petroleum (ANP). By ending the monopoly of state-owned Petrobras and establishing a favorable tax regime on production royalties, Brazil displayed its support and encouragement for smaller independent and foreign companies to participate in the exploration and production of the country's vast resources.

Brazil Highlights:

• Large areas virtually unexplored until privatization occurred in 1998 due to Petrobras monopoly.
• Small to mid sized production and development opportunities for early cash flow.
• Large Acreage Blocks available in 29 high potential basins
• Numerous recent discoveries including 5-8 billion barrel Tupi Discovery.
• Bid Round 9 Nov 07 demonstrates keen level of industry interest.
  - Over $ 1.2 billion committed in signature bonus alone.