Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

---

Petrobras discovers more natural gas and light oil in the Espírito Santo Basin

(Rio de Janeiro, December 6, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that confirmed, today, the discovery of new natural gas reservoirs north from the Camarupim field, at the Espirito Santo Basin, through the drilling of the pioneer well 4-ESS-177 and the exploratory well 6-ESS-168.

This discovery confirms, also, the high potential for oil and gas in this basin, which may result in the increase of expected recoverable volumes in this area, which already responds for a substantial part of the production projects of the Gas Production Anticipation Plan (Plangas).

The pioneer well was drilled at a depth of 708 meters from the surface water, at the coast of the Espírito Santo state, and found 101-meter thick gas-saturated sandy reservoirs at a depth of 3,417 meters. This well, located at the BM-ES-5 block, is operated by Petrobras, with a 85% interest, in a partnership with El Paso Corporation, that owns the remaining 35% interest.

In addition to the gas, oil was also found by the pioneer well in shallower reservoirs, at a depth of 2,461 meters. This discovery reinforces, as well, the high potential of prospects not yet drilled in the same block.

---

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

---

 

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

---