OGX Discovers Hydrocarbons in Well OGX-25 in the Campos Basin Off Brazil

OGX Petróleo e Gás Participações S.A. , the Brazilian oil and gas company responsible for the largest private sector exploratory campaign in Brazil, announced today the presence of hydrocarbons in the Eocene section of well 1-OGX-25-RJS and provided additional information concerning the previously announced discovery in the Albian-Cenomanian section of this well, which is located the BM-C-39 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

Subsequent to the provision of information to the market on December 8, 2010, the drilling of well OGX-25 proceeded, reaching carbonate reservoirs in the Albian-Cenomanian section, and allowing the identification of a total column of approximately 198 meters and total net pay of around 145 meters in this section, as compared to the 125 meters of column and 116 meters of net pay previously announced.

Moreover, new studies, which included logging and cable tests, also permitted the identification of hydrocarbons in sandstone reservoirs in the Eocene section, specifically a gas accumulation with a column of approximately 16 meters and net pay of around 8 meters.

It should be noted that the name of well 1-OGX-25-RJS has changed to 6-OGX-27P-RJS with the drilling of the Albian section. Its drilling will continue until a total estimated depth of 3,100 meters. This well is located in the BM-C-39 block at about 94 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 105 meters. The rig, Pride Venezuela, initiated drilling activities there on November 14, 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$3.3 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.

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Source:OGX, January  13, 2011;