Brasil: OGX Announces the Presence of Hydrocarbons in Well OGX-14

OGX Petróleo e Gás Participações S.A., the Brazilian oil and gas company conducting the largest private sector exploratory campaign in Brazil, announced today that it has identified an oil-bearing interval in the Albian section of well 1-OGX-14-RJS, located in the BM-C-40 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

“This discovery represents another very important step for OGX since hydrocarbons were detected in an area to the north of our recent discoveries in Campos in which the Company had not drilled previously,” commented Paulo Mendonça, General Executive Officer of OGX.

An oil column of about 60 meters with approximately 22 meters of net pay was encountered in carbonate reservoirs in the Albian section. The drilling of well OGX-14, also known as the Pero prospect, is still in progress and is expected to be drilled to a maximum final depth of approximately 3,400 meters.

The OGX-14 well, located in the BM-C-40 block, is situated approximately 96 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 104 meters. The rig Ocean Lexington, provided by Diamond Offshore, initiated drilling activities on May 30, 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, Middle Magdalena Valley, Lower Magdalena Valley and 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$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.

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Source: OGX, June 29, 2010;