OGX Strikes Oil in BM-C-43 Block Off Brazil

OGX has identified the presence of oil on the well 1-OGX-1-RJS, located in the BM-C-43 block, in the shallow waters of southern part of the Campos Basin. OGX holds a 100% working interest in this block.

"Brazil is the country of the present and OGX's success is the proof that it is worthwhile investing on talent of the Brazilian people as well as on the richness and abundance of our natural resources. These recent discoveries will contribute to robust economic growth and greater social justice," commented Mr. Eike Batista, OGX's controlling shareholder and Chairman.

"OGX-1 marks the beginning of a highly promising exploratory campaign. The success of this well confirms our positive expectations for the great petrolific potential of the southern part of Campos basin and paves the way to unveil the Vesúvio Complex and other objectives in our blocks”, commented Paulo Mendonça, OGX's General Executive Officer. "The creation of an oil company that has made initial discoveries in only 2 years is a milestone in the industry, which was only possible due to the motivation and talent of our unique team," added Mr. Mendonça.
The drilling of OGX-1 is still in progress and new targets will be reached soon. The well has encountered an oil column of more than 100 meters with around 40 meters of sandy reservoirs showing high permo-porosity.

The well is located in the BM-C-43 block and is situated approximately 85 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 140 meters. The rig Ocean Ambassador, provided by Diamond Offshore, initiated the drilling activities on September 17, 2009.