OGX Files Judicial Recovery Request
Eike Batista’s OGX Petróleo e Gás Participações S.A announces that given its adverse financial situation and accumulated losses, as well as the recent due and forthcoming interest payments of a great part of its debt, urgently filed, today, along with its subsidiaries OGX Petróleo e Gás S.A., OGX International GmbH and OGX Austria GmbH, a judicial recovery request at the Judicial District of Rio de Janeiro State, in the terms of 51 and following articles of law n.º 11.101/05, after deliberation made by its Board of Directors on October 30, 2013.
As previously informed to the market, the Company, together with its advisors, has been talking with potential investors.
“Nevertheless, the Company’s management understands that due to the challenges derived from its financial economic situation, the judicial recovery request is the most adequate measure to be taken in order to preserve the continuity of its business and to protect OGX’s and its shareholders’ best interests,” the company said in a statement.
OGX Petróleo e Gás SA is focused on oil and natural gas exploration and production and has a diversified portfolio comprised of 26 exploratory blocks in the Campos, Santos, Espírito Santo, Pará-Maranhão and Parnaíba basins in Brazil and 5 exploratory blocks in Colombia, in the Lower Magdalena Valley and the Cesar-Ranchería basins.
The total extension area is of approximately 4,600 km² in sea and approximately 36,700 km² on land, with 24,500 km² in Brazil and 12,200 km² in Colombia..OGX says it relies upon an experienced management team and has a cash position of approximately US$326 million in cash (as of June 2013) to fund its E&P investments and new opportunities. OGX is part of the EBX Group, an industrial group founded and led by Brazilian entrepreneur Eike F. Batista.
October 31, 2013