OGX to spud third well in Campos this month

Brazilian independent oil company OGX will spud its third well in the offshore BM-C-41 block in the Campos basin this month, company CFO Marcelo Torres said during a webcast.

Offshore staff

RIO DE JANEIRO -- Brazilian independent oil company OGX will spud its third well in the offshore BM-C-41 block in the Campos basin this month, company CFO Marcelo Torres said during a webcast.

"OGX-3 will be drilled in a few days. The wells OGX-4 and OGX-5 are planned to be drilled in December," he said. OGX holds a 100% working interest in the block, which is 85 km (53 mi) off the coast of Rio de Janeiro.

On Nov. 12, OGX announced the discovery of hydrocarbons at the OGX-2
well also located in BM-C-41 block. The well is being drilled by the Ocean Ambassador rig to a final depth of 3,425 m (11,237 ft), OGX said in a statement.

The company has $2 billion available to fund its plans to drill around 50 wells in Brazil by 2012, according to local press reports.

OGX reported a net loss of 32 million reais ($18.5 million) in the third quarter of the year, reversing the net profit of 248 million reais ($143.2 million) seen in 3Q 2008. Losses before taxes, meanwhile, totaled 27 million reais ($15.6 million) in the third quarter, Torres said. According to the executive, revenue fell 40% in the quarter to 181 million reais ($104.5 million).

The CFO said the company is in a "very comfortable financial position," with cash on hand totaling 7.8 billion reais ($4.5 billion).

"This is more than enough for us to cover our needs in the next three years," Torres added.

OGX is Brazil's largest independent oil and gas company in terms of exploratory acreage.

12/07/2009

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