OGX Considers Farm Out of Brazilian Oil Stakes
SAO PAULO (Dow Jones), Apr. 16, 2010
Brazilian independent driller OGX Petroleo e Gas Participacoes SA is considering the sale of minority stakes in offshore exploration blocks in the Campos Basin, the company said in a statement late Thursday.
"As a result of the recently announced discoveries made by the company in its exploratory blocks in the Campos Basin, OGX is considering the establishment of a process for the sale of a minority stake in the Campos Basin blocks, by means of a farm-out procedure," said the company.
"OGX contemplates carrying out this process as a means of partially monetizing its recently announced resources, which is a strategy that has been previously adopted by the EBX Group (OGX's group controller) in the past and is accepted as standard practiced in the oil industry," it added.
The company, which did not provide more details, said it hired an unnamed financial advisor to assist the company in evaluating potential opportunities.
OGX holds stakes in 29 exploration blocks in the Campos, Espirito Santo, Para-Maranhao, Parnaiba and Santos basins. Initial drilling success caused the company to ramp up its exploration program. Over the next four years, OGX plans to drill 79 wells -- 72 offshore and seven on land.
In 2010, OGX will drill 27 wells. Twenty-six of the wells will be drilled offshore, with a single onshore well planned for the Parnaiba Basin.
In June 2008, the company raised 6.7 billion Brazilian reals ($3.82 billion) in an initial public offering.
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