Brookwater Ventures Inc .’s wholly owned Brazilian subsidiary, Agua Grande Exploracao e Producao de Petroleo Ltda., agreed with partners to run production casing to a total depth of 2,698 m (8,851 ft) to test oil and gas shows in the 1-MAC-1-BA well on Block REC-T-166, Reconcavo Basin, Brazil.

The 1-MAC-1-BA well had a strong gas kick during penetration at the top of the Gomo Member shales of the Candeias formation. Log and sample analysis identified that oil stained sandstone interbeds were responsible for the gas kick. Within the 500-m (1,640-ft) Gomo shale sequence in the well, several potential hydrocarbon zones of interest have been identified including a 10-m (32-ft) fractured shale interval. This fractured shale interval has produced light oil in analogous wells along trend. Openhole image logs have confirmed the presence of fractures and this interval will be tested through casing.

The primary targets in the well, the pre-rift Agua Grande and Sergi sandstones, will be tested through casing based on good oil staining in chip samples to confirm formation fluid type.

Brookwater has 30% working interest in the block; Sonangol Starfish Oil & Gas S.A ., 40%; and Somoil Internacional de Petroleo do Brasil Ltda .; 30%.