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

RIO DE JANEIRO--(BUSINESS WIRE)--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.

ABOUT OGX

OGX Petróleo e Gás SA is focused on oil and natural gas exploration and production and is conducting the largest private sector exploratory campaign in Brazil. OGX has a diversified, high-potential portfolio, comprised of 29 exploratory blocks in the Campos, Santos, Espírito Santo, Pará-Maranhão and Parnaíba Basins, in Brazil, and 5 exploratory blocks in Colombia, Middle Magdalena Valley, Lower Magdalena Valley and Cesar-Ranchería basins. The total extension area is of approximately 7,000 km² in sea and approximately 34,000 km² in land, with 21,500 km² in Brazil and 12,500 km² in Colombia. OGX relies on an experienced management team and holds a solid cash position, with approximately US$3.4 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 at that moment. 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

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