OGX Announces New Gas Shows in the Devonian Section of Well OGX-16 in the Parnaíba Basin

Friday, Sep 03, 2010

OGX Petróleo e Gás Participações S.A. (“OGX”) (Bovespa: OGXP3, OTC:OGXPY), the Brazilian oil and gas company conducting the largest private sector exploratory campaign in Brazil, announced today that its subsidiary, OGX Maranhão, has identified additional evidence of gas in the Devonian section of well 1-OGX-16-MA, in block PN-T-68, in the onshore basin of Parnaiba. OGX Maranhão, an entity formed by OGX S.A. (66.6%) and MPX Energia S.A. (33.3%) is the operator and holds a 70% stake in this block, while Petra Energia S.A. holds the remaining 30%.

Upon further drilling of well OGX-16, strong evidence of gas was identified in two additional objectives in the Devonian section, proving a significant hydrocarbon potential in this basin. These objectives are approximately 800 meters below the previous interval announced to the market on August 12, 2010. Fractured shales of the Pimenteiras Formation were identified with up to 909 Total Gas Units (TGU) and a column of approximately 23 meters. Right below this accumulation, sandstone reservoirs were identified in the Itaim Formation providing evidence of 370 TGU in a column of approximately 25 meters.

The drilling of well OGX-16, also known as the Califórnia prospect, is still in progress and OGX continues to target new objectives. This well is located approximately 260 km from São Luis, capital of Maranhão. The rig QG-1, provided by Queiroz Galvão, initiated its drilling activities on July 5, 2010.

Source: Business Wire