OGX Petróleo e Gás Participações S.A. (“OGX”), the Brazilian oil and gas company conducting the largest private sector exploratory campaign in Brazil, announced today that it has identified hydrocarbons indicative of light oil and gas in the Santonian section of well 1-OGX-19A-RJS, located in the BM-S-58 block, in the shallow waters of the Santos Basin. OGX holds a 100% working interest in this block.
“This new discovery confirms the existence of an important play in the Santonian age of our Santos basin blocks, revealing the presence of light hydrocarbons in sandstone reservoirs of good porosity. This play initially identified through the drilling of well OGX-11, is an excellent example of OGX’s ability to open new exploratory frontiers,” commented Paulo Mendonça, General Executive Officer of OGX.
An oil column of about 145 meters with approximately 40 meters of net pay was encountered in sandstone reservoirs in the Santonian section of well OGX-19A, also known as the Aracaju prospect. The drilling of the well is still in progress and is expected to be drilled to a maximum final depth of approximately 5,250 meters.
The OGX-19 well, located in the BM-S-58 block, is situated approximately 112 kilometers off the coast at a water depth of approximately 172 meters. The rig Ocean Quest initiated drilling activities there on August 13, 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$3.4 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,September 30, 2010,