Brazilian state-run energy giant Petroleo Brasileiro SA (PBR) notified the country's National Petroleum Agency late Friday that a wildcat well in the Santos Basin tested positive for oil.

Petrobras said that the 9BRSA741SPS well in the BM-S-7 block showed traces of oil. The prospect was drilled by the Pride South Atlantic rig to a target depth of 4,625 meters, according to ANP drilling data.

The BM-S-7 block also contains the Piracuca discovery, estimated to hold light oil and natural gas reserves of about 550 million barrels of oil equivalent. The announcement was made in April by Petrobras and Spain's Repsol YPF (REP), which declared the field commercially viable.

Petrobras holds a 63% stake in the block, while Repsol holds 37%.

Oil companies operating in Brazil must inform the ANP of indications of oil, gas or hydrocarbons in any exploratory well within 48 hours. The disclosures are routine, and do not indicate commercial viability.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com