Petrobras Finds Light Oil At Tupi Well

Petrobras (NYSE: PBR), Brazil's state-controlled oil company, said it found light oil at the Tupi OW well in the Tupi Field, news that may confirm Tupi's potential reserves of up to 8 billion barrels of crude oil.

The well was drilled to a depth of 7,000 feet almost 170 miles off the coast of Rio, according to Reuters.

The Tupi is an alluring, yet possibly costly prospect for Petrobras and other oil majors. The multi-billion barrel potential is intoxicating, but the cost of extracting oil from Brazil's pre-salt areas is expected to be very high.

Petrobras is planning a secondary share offering later this year that may raise up to $60 billion to help the company fund pre-salt drilling activities.