OGX Briefs on Issuance of $2.563B Senior Unsecured Notes

OGX in compliance with the Instruction of Comissão de Valores Mobiliários (CVM) announced the issuance of Senior Unsecured Notes totaling US $2.563 billion. The Notes issued on May 26, 2011 are due and payable by the Company on June 1, 2018 and will accrue interest at rate of 8.5% per annum, payable semi-annually, in June and December.

The Notes will be offered to qualified institutional buyers (QIBs), resident and domiciled in the United States, in accordance with the provisions of "Rule 144A" of the Securities Act of 1933, as amended, and in other countries except the United States and Brazil, based on "Regulation S".

When added to OGX’s current cash position of approximately US $2.5 billion (as of March 31, 2011), the net proceeds from the issuance Notes provide a liquidity of approximately US $5.063 billion, at a level which is sufficient for OGX to support the exploratory campaign and the production development of the discoveries made until the Company becomes self-funded by its own cash flow generation.

"This funding provides the necessary capital for the development of OGX's sizable discoveries that were made in an unprecedented time frame for the oil and gas sector. OGX now has the natural, financial, human and physical resources to implement its business plan," declared Paulo Mendonça, General Executive Officer and Exploration Officer for OGX.