OGX raises Brazil reserves prospects by 39.6%

Brazil’s largest offshore independent, OGX, has announced a 39.6% increase in its independently certified net risked prospective resources, according to a regulatory filing by the company.

Offshore staff

HOUSTON -- Brazil’s largest offshore independent, OGX, has announced a 39.6% increase in its independently certified net risked prospective resources, according to a regulatory filing by the company.

Two reports from DeGolyer & MacNaughton (D&M) raised the net risked prospective resources of OGX to 6.7 Bboe and estimated net contingent resources at 212 MMboe.

D&M was responsible for OGX’s first appraisal in March 2008 which estimated 4.8 Bboe of net risked prospective resources with an average probability of success of 27% based primarily on 2D seismic data.

The newly issued Prospective Resource Report used a 34.5% average probability of success. This report was based on recent seismic data for five blocks in the southern part of the Campos basin and for five blocks in the Espírito Santo basin.

“The D&M reports … 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,” commented Paulo Mendonça, OGX’s general executive officer. “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.”.

This report also includes preliminary volume estimates of 212 MMboe based on few existing seismic lines in the onshore blocks recently acquired in the Parnaíba basin, Maranhão state

OGX, founded some two years ago, is today Brazil’s leading independent in terms of offshore acreage.

11/11/2009

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