Brazil's OGX Spots Oil Shows at Shallow Water Prospect

OGX has identified an oil-bearing interval in the Albian section of well 1-OGX-6-RJS, located in the BM-C-41 block, in the shallow waters of the southern part of the Campos Basin. OGX holds a 100% working interest in this block.

So far an oil column of about 70 meters with approximately 38 meters of net pay was encountered in carbonate reservoirs in the Albian section. Thermobaric effects associated with volcanism in the area contributed to optimize the permo-porosity properties of the reservoirs. The drilling in the Albian section is still in progress and the well OGX-6 will be drilled up to a final depth of approximately 3,600 meters.

More than 50 meters of reservoir rock cores have been collected at this well in order to analyze characteristics of the reservoirs and to aid in the appraisal and development of future projects. These sample cores and logs indicate a strong correlation between the Albian reservoirs of OGX-6 (Etna), OGX-3 (Waimea), and OGX-2 (Pipeline). The Etna prospect is located 8.5 km to the northeast of the Waimea prospect and is structurally indicates 400 meters above the Waimea reservoir.

"Our review of this data indicates that these accumulations may be connected and that the recently discovered oil province may, in fact, extend to the north of the BM-C-41 block, confirming its very significant petrolific potential," commented Mr. Paulo Mendonça, OGX's General Executive Officer. "New data will be collected and new wells will be drilled in order for us to better map the prospects identified in this province" added Mr. Mendonça.

The OGX-6 well is located in the BM-C-41 block and is situated approximately 82 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 137 meters. The rig Ocean Quest, provided by Diamond Offshore, initiated drilling activities on January 2, 2010.


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