OGX Strikes Pay in Parnaiba Onshore Basin

OGX Petróleo e Gás Participações S.A. (OGX) announced today that, through its subsidiary OGX Maranhão, it has identified the presence of gas in the Upper Devonian section of well 1-OGX-22-MA, in block PN-T-68, in the onshore basin of Parnaiba. OGX Maranhão, an entity formed by OGX S.A. (66.6%) and MPX Energia S.A. (33.3%), is the operator and holds a 70% stake in this block, while Petra Energia S.A. holds the remaining 30%.

After drilling the first 10 meters in the Upper Devonian section with significant gas shows, at a depth of 1,520 meters, OGX Maranhão has decided to conduct a drillstem test. The well was opened to a flow which reached a wellhead pressure of 1,950 psi with flames of approximately 20 meters long. After the conclusion of the test, the drilling of well OGX-22, Fazenda São José prospect, will continue until the estimated total depth of 3,200 meters, targeting new exploratory objectives.

“The drilling of this second successful well, performed at a new wildcat and independent structure, located 12.5km away from 1-OGX-16-MA (California), confirmed the presence of a petrolific province in the region and highlighted the potential of our blocks,” commented Mr. Paulo Mendonça, General Executive Officer of OGX.

The OGX-22 well, located in the PN-T-68 block, is situated approximately 260 kilometers from São Luis, the capital of the state of Maranhão. The rig QG-1initiated drilling activities there on October 23, 2010.