OGX Hits Hydrocarbons in Offshore BM-C-41 Block

OGX Petróleo e Gás Participações S.A., the largest Brazilian private sector oil and gas company in terms of offshore exploratory acreage, has identified an additional oil-bearing interval in the Albian section on the well 1-OGX-2A-RJS, located in the BM-C-41 block, in the shallow waters of southern part of the Campos Basin. OGX holds a 100% working interest in this block.

"The identification of a very expressive oil bearing column of high quality carbonate reservoirs in the Albian section exceeded our expectations," commented Mr. Paulo Mendonça, OGX's General Executive Officer. "Preliminary data indicates that this is one of the best Albian plays our team has encountered in Brazil," added Mr. Mendonça.

An oil column of approximately 250 meters with over 100 meters of net pay has been encountered in the Albian section in the well OGX-2. These high quality carbonate reservoirs have shown up to 23% of porosity. The drilling of OGX-2A is still in progress aiming at additional objectives until the final depth of 3,425 meters.

The well is located in the BM-C-41 block and 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, provided by Diamond Offshore, initiated the drilling activities on October 22nd, 2009.