Brazil: OGX Announces Presence of Hydrocarbons in Well OGX‐20 in the Campos Basin

OGX Petróleo e Gás Participações S.A. (“OGX”) , the Brazilian oil and gas company conducting the largest private sector exploratory campaign in Brazil, announced today that it has identified the presence of hydrocarbons in the Aptian section of well 1‐OGX‐20‐RJS, located in the BM‐C‐41 block, in the shallow waters of the Campos Basin.

OGX holds a 100% working interest in this block.

Following the recently announced discoveries in the Maastrichtian and Albian sections of well OGX‐20, the drilling of this well proceeded to the Aptian section, where an oil column of about 128 meters with approximately 42 meters of net pay was encountered in carbonate reservoirs. The drilling of OGX‐20, Tupungato prospect, is still in progress and is expected to reach a depth of approximately 4,000 meters.

The OGX‐20 well, located in the BM‐C‐41 block, is situated approximately 85 kilometers off the coast of Rio de Janeiro at a water depth of about 130 meters. The rig, Ocean Ambassador, initiated drilling activities

there on September 5, 2010.

ABOUT OGX

OGX Petróleo e Gás SA is focused on oil and natural gas exploration and production and is conducting the largest private sector exploratory campaign in Brazil. OGX has a diversified, high‐potential portfolio, comprised of 29 exploratory blocks in the Campos, Santos, Espírito Santo, Pará‐Maranhão and Parnaíba Basins, in Brazil, and 5 exploratory blocks in Colombia, in Middle Magdalena Valley, in Lower Magdalena

Valley and in Cesar‐Ranchería basins. The total extension area is of approximately 7,000 km² in sea and approximately 34,000 km² in land, with 21,500 km² in Brazil and 12,500 km² in Colombia. OGX relies on  an experienced management team and holds a solid cash position, with approximately US$3.4 billion in cash to fund its E&P investments and new opportunities. In June 2008, the company went public raising R$6.7 billion, the largest amount ever raised in a Brazilian primary IPO at that moment. OGX is a member of the EBX Group, an industrial group founded and under the leadership of Brazilian entrepreneur Eike F. Batista, who has a proven track record in developing new ventures in the natural resources and infrastructure sectors.

[mappress]

Source:OGX , October  18, 2010;