RIO DE JANEIRO - (Business Wire) OGX Petróleo e Gás Participações S.A. (“OGX”) (Bovespa: OGXP3, OTC: OGXPY), the largest Brazilian private sector oil and gas company in terms of offshore exploratory acreage, disclosed today the results of two reports prepared by DeGolyer & MacNaughton (“D&M”) which certify the new estimates of OGX´s resources. The first report (“Prospective Resource Report”) certifies the net risked prospective resources of the Company in 6.7 billion barrels of oil equivalent (“boe”) and the second one (“Contingent Resources Report”), the net contingent resources in 212 million of boe. DeGolyer & MacNaughton has over 70 years of experience as a leading consultant in reserve certification for the oil and natural gas industry with extensive knowledge of the Brazilian sedimentary basins. D&M was responsible for OGX’s first appraisal report as of March 2008 which estimated 4.8 billion boe of net risked prospective resources with an average probability of success of 27% based primarily on 2D seismic data.
“The D&M reports disclosed today confirm the expectations of our technical team, based on the new seismic data, that the volumes in our portfolio are even better and the exploratory risks lower than previously estimated. The new volume estimates further encourage us to review our exploratory schedule for the next years in order to accelerate the process of transforming our resources in proven reserves,” commented Mr. Paulo Mendonça, OGX’s General Executive Officer.
The newly-issued Prospective Resource Report, which replaces the previously issued report from March of 2008, certified our risked prospective resources of 6.7 billion boe, considering an average probability of success of 34.5%. This report was based on recently acquired seismic data for the five blocks located in the southern part of the Campos basin and for the five blocks in the Espírito Santo basin. This report also includes preliminary volume estimates based on few existing seismic lines in the onshore blocks recently acquired in the Parnaíba basin, Maranhão state. While these blocks comprise approximately 21,500 km²of acreage, there was only 1,200 km of 2D seismic data available that had been originally acquired in the 1980’s.
The Contingent Resources Report certified net contingent resources of 212 million boe in the Parnaíba Basin, based on data derived from a well drilled in 1987 on block PN-T-68, where hydrocarbons were discovered.
The table below shows the new numbers:
In millions of boe
| Basin | | Blocks | | Total
Unrisked
Resources(1) | | Probability of
Success(2) | | Total
Risked
Resources | | OGX
Risked
Resources | | Total
Contingent
Resources | | OGX
Contingent
Resources |
| Campos | | 7 | | 9,350 | | 44.1% | | 4,124 | | 3,693 | | - | | - |
| Santos | | 5 | | 6,659 | | 27.0% | | 1,796 | | 1,688 | | - | | - |
| Espírito Santo | | 5 | | 5,017 | | 32.6% | | 1,634 | | 817 | | - | | - |
| Pará-Maranhão | | 5 | | 2,104 | | 21.3% | | 447 | | 447 | | - | | - |
| Parnaíba | | 7 | | 186 | | 19.9% | | 37 | | 26 | | 303 | | 212 |
| Total | | 29 | | 23,317 | | 34.5% | | 8,039 | | 6,672 | | 303 | | 212 |
| | (1) Gross Prospective Resources (2) Pg = Probability of geological success |
In light of the substantial volume increase, OGX is updating its Business Plan to reflect the broader range of activities required in order to support the process of transforming our resources in proven reserves and to expedite production.
Both reports were prepared with information available as of September 30th 2009 and are available for download on OGX’s website, www.ogx.com.br/ri. For more information, OGX invites all interested parties to participate in a conference call to be held on Tuesday, November 10th, at 7:00 a.m. NY time. To access the call:
Audio will be available three hours after the conference call on: http://ri.ogx.com.br/enu/s-10-enu.html
ABOUT OGX
OGX Petróleo e Gás SA is focused on oil and natural gas exploration and production in Brazilian offshore sedimentary basins and is Brazil’s largest private sector oil and gas company in terms of offshore exploration area, with approximately 7,000 km², as well as 21,500 km² onshore area. OGX has a high potential and diversified portfolio, composed of 29 exploratory blocks in the Campos, Santos, Espírito Santo, Pará-Maranhão and Parnaíba Basins. OGX relies on an experienced management team and holds a solid cash position, with more than US$4 billion in cash to fund its E&P investments and new opportunities. In June 2008, the company went public raising R$6.7 billion, the largest amount ever raised in a Brazilian primary IPO. OGX is a member of the EBX Group, an industrial group founded and under the leadership of Brazilian entrepreneur Eike F. Batista, who has a proven track record in developing new ventures in the natural resources and infrastructure sectors. For more information, please visit www.ogx.com.br/ri
LEGAL NOTICE
This document contains Company-related statements and information that reflect the current vision and/or expectations the Company and its management have regarding its business plan. These include, among others, all forward-looking statements that involve forecasts and projections, indicate or imply results, performance or future achievements, and may contain words such as “believe,” “foresee,” “expect,” “consider,” “is likely to result in” or other words or expressions of similar meaning. Such statements are subject to a series of expressive risks, uncertainty and premises. Please be advised that several important factors can cause the actual results to diverge materially from the plans, objectives, expectations, estimations, and intentions expressed in this document. In no event shall the Company or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business carried out based on the information and statements that appear in this presentation, or for indirect damage, lost profit or related issues. The Company does not intend to provide to potential shareholders with a revision of the statements or an analysis of the differences between the statements and the actual results. You are urged to carefully review OGX's offering circular, including the risk factors included therein. This presentation does not purport to be all-inclusive or to contain all the information that a prospective investor may desire in evaluating OGX. Each investor must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision.
OGX
Investors:
Marcelo Torres, +55 21 2555 4223
marcelo.torres@ogx.com.br
or
Luiz Garcia, +55 21 2555 4223
luiz.garcia@ogx.com.br
or
Juliana Schmith, +55 21 2555 4223
juliana.schmith@ogx.com.br
or
Media:
Camila Manfredini, +55 21 2555 4673
camila.manfredini@ogx.com.br
