OGX is conducting the largest private exploratory campaign in Brazil
Seven wells drilled in the Campos Basin yielded discoveries estimated between 2.6 and 5.5 billion boe

““During the first quarter of 2010, OGX continued to make great advances in its drilling campaign, seeing significant progress in the identification of new accumulations as well as in the delineation of prior discoveries", commented Mr. Paulo Mendonça, OGX General Executive Officer. “In the coming months, we anticipate undertaking a series of Drillstem Tests, an important step toward the goal of initiating production in 2011. Production is currently expected to commence in the Vesuvio and Waimea prospects”, added Mr. Mendonça.

Highlights:

• Seven wells have previously announced volume estimates of 2.6 to 5.5 billion barrels of oil equivalent;
• Portfolio comprised of 34 exploratory blocks, of which 29 in Brazil, in the Campos, Santos, Espírito Santo, Pará-Maranhão and Parnaíba Basins and 5 in Colombia, in the Cesar-Ranchería, Lower Magdalena Valley and Middle Magdalena Valley Basins;
• Evaluation report issued by Degolyer & MacNaughton (D&M) certifying in 6.7 billion barrels of net risked prospective resources, considering an average probability of success of 34.5%, and 141 million boe of net contingent resources;
• Initial production expected to begin ahead of schedule in early 2011 and long-term production target aimed at achieving 730 thousand barrels per day by 2015 and 1.380 million by 2019;
• Signed a Strategic Cooperation Agreement with OSX Brasil S.A. that supports OGX’s long-term demand for equipment and production services. The equipment provided by OSX will contribute to OGX’s compliance with local content requirement obligations assumed under concession contracts with the ANP.
• Chartered the first FPSO (Floating Production Storage & Offloading) production vessel, OSX-1, from OSX Brasil S.A. for a period of 20 years;
• Gained approval from the ANP, the Brazilian Petroleum, Natural Gas and Biofuels Agency, for the transfer of the rights and obligations related to a 70% interest in seven exploratory onshore blocks in the Parnaíba Basin to OGX Maranhão Petróleo e Gás Ltda. (“OGX Maranhão”), a special purpose vehicle in which the Company holds a 66.7% stake and MPX Energia S.A. ("MPX") has 33.3% of the share capital.
• Eight drilling units chartered, of which 6 semisubmersibles, 1 onshore rig and 1 jack-up;
• OGXP3 was included in the Ibovespa index and subsequently its weighting within the index portfolio was increased.  Since May 2010, OGXP3 has been given a weighting of 2.48%, corresponding to the 11th position in the selected portfolio of 66 stocks;
• OGX’s Level I Global Depositary Receipts (GDR) started trading on the over-the-counter market under the symbol “OGXPY”. Banco Itaú S.A. was hired as the custodian and Bank of New York Mellon as the depositary institution.