OGX Notes 4 Bboe Increase in Potential Resources Offshore Brazil

OGX disclosed the results of the reports prepared by petroleum consultants DeGolyer & MacNaughton ("D&M"), which estimate new volume of resources held by the Company in Brazil's Campos and Parnaiba basins and three basins in Colombia. These reports indicate net potential resources for OGX of 5.7 billion barrels of oil equivalent ("boe") in the Campos Basin, 1.0 billion boe in the Parnaíba Basin and 1.1 billion boe in Colombia. When combined with the estimates from the previous report for the Santos, Espírito Santo and Pará-Maranhão Basins (Sep/09), these new results present a total volume of net potential resources of 10.8 billion boe.

These results validate the successful and accelerated evolution of the Company's asset portfolio and its ability to grow organically, through massive discoveries as well as via the acquisition of new areas, demonstrating a unique capacity of to create value and deliver results.

"These results, presented by an independent, internationally-renowned consulting group, confirm the extraordinary success of our business strategy and execution, which has been to focus on world-class assets located mostly in shallow waters. We have discovered accumulations of scale and levels of productivity comparable to those found in the pre-salt areas, and will be able to develop them at a much lower cost, utilizing fully tried-and-tested technologies," commented Eike Batista, Chairman and CEO of OGX.

"OGX has demonstrated that it has the technical and managerial expertise to discover billions of barrels in accumulations in basins which vary greatly in their geological formations, and to transform their prospective resources into contingent resources. At the same time, we have expanded our exploration portfolio with high-potential assets. We have also made huge strides in the delineation of new discoveries and production, while continuing to grow and create value for all stakeholders," emphasized Paulo Mendonça, General Executive Officer and Head of Exploration for OGX.

The five reports submitted by D&M were prepared with the information available as of December 31, 2010, for the Campos and Parnaíba Basins, and as of March 31, 2011 for Colombia. The documents cover a period of approximately 15 months of exploration and 22 wells, and do not include the wells drilled subsequently. For the Campos Basin, only the post salt sections were considered. The new reports update the figures that were previously available for these two basins and present the first estimates for the five blocks held by OGX in Colombia. D&M's potential resource report dated September 2009 continues to apply for the Santos, Espírito Santo and Pará Maranhão basins.

The results of these studies reflect the success of OGX's strategy to prioritize, in the initial phase of its campaign, the accomplishment of ANP work program and the exploratory drilling of wildcat wells to maximize the discovery of accumulations. In response to the large number of discoveries made, the Company is intensifying its appraisal campaign in preparation for Declarations of Commerciality and the start-up of production.

"The identification of our discoveries and the recent chartering of five FPSOs and two WHPs with OSX, which will be followed by new orders, represent an important step towards production. We have rapidly executed on our business plan and achieved important milestones, enabling us to the begin production and commercialization within a timeframe that is unprecedented for the oil and gas industry," stated the Production Officer, Reinaldo Belotti.