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 offshore gas in Espírito Santo

(Rio de Janeiro, May 09, 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 well 6-ESS-168 (acronym ANP: 6-BRSA-486-ESS), still in operation, has reached sandstone reservoirs saturated with gas with a thickness of approximately 130 meters at a depth of 3,378 meters. Situated to the north of the Camarupim Field, the importance of the results of this well stem from the confirmation of a substantial thickness of sandstone gas saturated reservoirs which should translate into an increase in expected recoverable volumes in the area.

Located in the Espírito Santo Basin in the BM-ES-5 exploratory concession, the well is being drilled approximately 37 km from the Espírito Santo coast in a water depth of  763 meters.

Petrobras, with a 65% stake, is operating this concession in partnership with El Paso that holds the remaining 35%.

This preliminary result confirms the extension to the north of the Camarupim Field, the commercial viability of which was declared at the end of 2006. This field was discovered with the drilling of well 4-ESS-164A (acronym ANP 4-BRSA-406A-ESS), which detected about 112 meters of gas reservoirs.

---

 

 

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.

---