OGX Strikes Hydrocarbons in Shallow Waters of Campos Basin, Offshore Brazil
A 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- Cenomanian section of well 3-OGX-35D-RJS, an appraisal well of the Waikiki accumulation which was initially discovered through the drilling of well 1-OGX-25.
This well is located approximately 2 km from the wildcat 1-OGX-25, in the BM-C-39 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.
“Continuing its appraisal campaign to delineate previously discovered accumulations, OGX drilled the well OGX-35D in the structure of Waikiki, which presented features very similar to those of the wildcat well, confirming the extension and exceptional quality of the reservoirs,” commented Paulo Mendonça, General Executive Officer of OGX. “This discovery validates our geological model for the region and also highlights our progress towards the production phase in the northern Campos blocks,” added Mr. Mendonça. The discovered oil column is approximately 158 meters with a net pay of about 80 meters, with lighter oil than is usually found in the Campos basin. This directional well, drilled to a depth of 2,400 meters, is a pilot well for the horizontal well that will be drilled in this accumulation.
The OGX-35D well is located in the BM-C-39 block and is situated about 89 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 104 meters. The rig, Ocean Lexington, initiated drilling activities there on February 12, 2011.
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.
Source: OGX, March 25, 2011;