OGX Makes Third Discovery in Offshore BM-C-41 Block

RIO DE JANEIRO (Dow Jones), Dec. 3, 2009

Brazilian oil and gas company OGX Petroleo e Gas Participacoes SA said Thursday that it discovered hydrocarbons for a third time at the Campos Basin BM-C-41 block.

The independent driller said its 1-OGX-2A-RJS well in the BM-C-41 block showed the presence of hydrocarbons. OGX reported a similar discovery in the same well on Monday.

Cuttings and log analysis indicated an oil column of 170 meters and net pay, or reservoir thickness, of about 50 meters, OGX said. The sandstone and carbonate rock reservoirs showed porosity of 20%.

"The presence of these oil-bearing reservoirs in the aptian section confirmed our model for this area," OGX Chief Executive Paulo Mendonca said in a statement.

On Monday, the same well showed the presence of hydrocarbons in the Albian section. The drilling found a 250-meter oil column with more than 100 meters of net pay. The Albian reservoir showed porosity of 23%.

The wells were drilled by Diamond Offshore's Ocean Ambassador semisubmersible drilling rig, which started spudding wells in the area on Oct. 22. The rig is targeting a final depth of 3,425 meters.

In mid-November, the 1-OGX-2-RJS well in the BM-C-41 block tested positive for hydrocarbons. The prolific Campos Basin produces more than 85% of Brazil's crude oil. OGX holds a 100% stake in the block.

Copyright (c) 2009 Dow Jones & Company, Inc.