The comments echoedthose in the industry who believe that parts of South America host reservessimilar to those in West Africa. This “mirror image” concept helped to drivedemand for acreage at Brazil's 11th bidding round earlier this year.

Two of thesecompanies, Calgary-based Niko Resources and Brazil’s Petra Energia, betweenthem picked up blocks PEPB-M-621 and PEPB-M-729 in the north-eastPernambuco-Paraiba offshore basin.

“There is a lot ofpotential for exploration,” said Niko general manager Marty Wittstrom.