OGX Announces Another Discovery in Campos Basin, Offshore Brazil

 

OGX Petróleo e Gás Participações S.A. (“OGX”) , the Brazilian oil and gas company responsible for the largest private sector exploratory campaign in Brazil, announced  that it has identified the presence of hydrocarbons in the Albian section of well 3-OGX-36D-RJS, an appraisal well of the Pipeline accumulation which was initially discovered through the drilling of well 1-OGX-2A.

This well is located 2.6 km from the wildcat 1-OGX-2A, in the BM-C-41 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

“As we expected, the results from OGX-36D confirm the connectivity of the accumulations in the carbonate reservoirs in the Albian section previously discovered through the drilling of well 1-OGX-2A, Pipeline,” commented Paulo Mendonça, General Executive Officer of OGX. “This is another very important step in the appraisal phase as we continue to delineate our discoveries in the Campos basin,” added Mr. Mendonça.

As anticipated, the oil column is of approximately 135 meters with a net pay of about 60 meters. This directional well, drilled to a depth of 3,612 meters, is a pilot well for the horizontal well that will be drilled next. A drill-stem test will be performed to verify the productivity of this area, as was done recently for the Waimea accumulation, where  exceptional results were obtained.

The OGX-36D well is located in the BM-C-41 block and is situated about 77 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 128 meters. The rig, Ocean Star, initiated drilling activities there on February 14, 2011.

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 (as of September, 2010) 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,  March 23, 2011;