OGX Estimates Up to 500MM Barrels in New Discovery Well

RIO DE JANEIRO (Dow Jones), Nov. 16, 2009

Brazilian oil and gas company OGX Petroleo e Gas Participacoes SA's well 1-OGX-2A-RJS, whose discovery was announced last Thursday, could hold between 400 million and 500 million barrels of recoverable oil, OGX said in a statement Monday.

The well is located in the BM-C-41 block, where OGX holds a 100% working interest, in the shallow waters of the Campos Basin, off the coast of Rio de Janeiro State.

OGX said the oil was in the Upper Cretacious reservoirs.

"As expected, we have identified additional layers containing oil in the well OGX-2A, confirming the significant potential of the area. The drilling is still in progress, as there are other important, deeper objectives to be achieved beyond those already announced," commented Paulo Mendonca, General Executive Officer of OGX.

The well is situated approximately 77 kilometers off the coast of the state of Rio de Janeiro, at a water depth of approximately 130 meters. The rig Ocean Ambassador initiated drilling of well OGX-2A on Oct. 22.  

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