Brazil: OGX Finds Hydrocarbons in BM-C-40 Block, Campos Basin


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 the presence of hydrocarbons in the Albian and Santonian sections of well 1-OGX-18-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.

“The OGX-18 well is located 2 kilometers away from OGX-14, the Peró prospect. The proximity of these discoveries, combined with the fact that the Albian section of this well is structurally 56 meters higher than

at OGX-14, points to a potentially superior column than the one already encountered in this block. This discovery reinforces our belief in the attractiveness of the northern blocks in the Campos basin, and could

indicate a new province of great importance to our Company,” commented Paulo Mendonça, General Executive Officer of OGX.

To date, an oil column of approximately 12 meters was encountered in carbonate reservoirs in the Albian section of well OGX-18, also known as Ingá. The well was in a hydrocarbon zone when drilling was

interrupted due to sampling. It will resume drilling in order to determine the total column and net pay.

Additionally in the Santonian section, high porosity sands with hydrocarbons were encountered. The drilling of well OGX-18 is still in progress and is expected to continue to a maximum final depth of approximately 2,800 meters.

The OGX-18 well, located in the BM-C-40 block, is situated approximately 95km off the coast of the state of Rio de Janeiro at a water depth of approximately 105 meters. The rig, Ocean Lexington, initiated drilling

activities there on July 29, 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$3.8 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, August 11, 2010:

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