About OGX- Business
Business
Campos Basin
Santos Basin
Espírito Santo Basin
Pará-Maranhão Basin
Parnaíba Basin
Campos Basin
The Campos Basin, with a total sedimentary area of approximately 115,000 km² (28.4 million acres), is the largest oil and natural gas producing region in Brazil, with production as of February 2008 of approximately 1.63 million boepd. In 2007, the Campos Basin accounted for approximately 77% of Brazilian oil production.
We currently have concession rights to seven exploration blocks, comprising a total acreage of 1,177 km² (290,843 acres), primarily in the southern part of Campos Basin, which is considered to be one of the most prolific oil regions in Brazil. OGX will operate five of these concessions, while the other two will be operated by Maersk. All of our blocks are located in areas adjacent to existing oil fields including the Polvo field (operated by Devon Energy), with proven and probable reserves of approximately 285 million boe, the Peregrino field (operated by Hydro Brasil), with proven and probable reserves of approximately 500 million boe, the Papa-Terra field (operated by Petrobras), with proven and probable reserves of approximately 700 million boe, and the Maromba field (operated by Petrobras), with proven and probable reserves of approximately 245 million boe, according to information provided by IHS Inc., its subsidiaries and affiliates.
According to the Prospective Resources Report prepared by DeGolyer & MacNaughton in September 2009, our exploration blocks in the Campos Basin contain Net Risked Prospective Resources (mean estimate) of 3.693 billion barrels of oil, assuming an average probability of success of 44.1%.
OGX initiated its exploratory activities in this basin in September 2009. On the block BM-C-43, a discovery estimated between 500 million and 1.5 billion barrels of recoverable oil has been made in the Vesuvio prospect. In the Pipeline prospect on the block BM-C-41, another discovery estimated between 400 to 500 boe in the Upper Cretaceous reservoirs has been made and evidence of gas has been found in the Eocene, Albian, Aptian and Barremian reservoirs. Production is expected to begin in 2011.
The table below shows our exploration blocks in the Campos Basin:
Exploration Blocks Gross acreage (km²) Participating interests (%)
_______________ ____________ __________________________
BM-C-37.............. 177 50% OGX / 50% MAERSK(1)
BM-C-38.............. 177 50% OGX / 50% MAERSK(1)
BM-C-39.............. 109 100% OGX
BM-C-40.............. 124 100% OGX
BM-C-41.............. 236 100% OGX
BM-C-42.............. 177 100% OGX
BM-C-43.............. 177 100% OGX
Total ............................. 1.177 -
(1) Exploration blocks that will be operated by Maersk.
Santos Basin
The Santos Basin currently represents one of the most promising exploration areas in Brazil, with a total acreage of approximately 350,000 km² (86.5 million acres). The most significant recent oil and natural gas discoveries in Brazil have occurred in this basin, notably the Tupi and Jupiter fields with an estimated 8 billion boe and 6.4 billion boe (36 Tcf of natural gas) of prospective resources, respectively
We currently hold concession rights or a participating interest, as applicable, in five exploration blocks in the Santos Basin, covering a total acreage over 1,000 km² (247,105 acres), of which four were acquired in the ANP’s Ninth Bidding Round and one through a farm-in agreement in which we have a 65% stake. Four of our blocks are located in areas adjacent to the Mexilhão field operated by Petrobras, where there are potential natural gas reserves of approximately 8 Tcf or 1.4 billion boe.
Based on information derived from the Prospective Resources Report prepared by DeGolyer & MacNaughton in September 2009, our exploration blocks in the Santos Basin contain Net Risked Prospective Resources (mean estimate) of 1.688 billion boe, assuming an average probability of success of 27%.
OGX’s exploratory activities in the Santos Basin commenced in August 2009, with the drilling of a well in the block BM-S-29, operated by Maersk. Oil and gas shows have been identified in this well.
The table below shows our exploration blocks in the Santos Basin:
Exploration Blocks Gross acreage (km²) Participating interests (%)
BM- S-56........................ 176 100% OGX
BM- S-57........................ 176 100% OGX
BM- S-58........................ 176 100% OGX
BM- S-59........................ 148 100% OGX
BM-S-29 (Farm-in)....... Aprox. 400 65% OGX
Total Aprox. 1.076 -
Espírito Santo Basin
We believe that the Espírito Santo Basin is a promising new oil and natural gas frontier in Brazil, with total acreage of 102,723 km² (25.2 million acres).
We currently hold concession rights to five exploration blocks in the Espírito Santo Basin that cover a total acreage of 3,620 km² (894,521 acres). All of these blocks are located in deepwater and will be operated by Perenco. Our identified prospects have similar geologic features to those of oil and natural gas fields already discovered in the Basin, fields such as Golfinho, Camarupim and Canapu, which produce light oil and natural gas from the Upper Cretaceous reservoirs. Based on information derived from the Prospective Resources Report prepared by DeGolyer & MacNaughton in September 2009, our exploration blocks in the Espírito Santo Basin contain Net Risked Prospective Resources (mean estimate) of 817 million boe, assuming an average probability of success of 32.6%.
The table below shows our exploration blocks in the Espírito Santo Basin:
Exploration blocks Gross acreage (km²) Participating interests (%)
________________ ____________________ ___________________________
BM-ES-37.............. 725 50% OGX / 50% PERENCO(1)
BM-ES-38.............. 725 50% OGX / 50% PERENCO(1)
BM-ES-39.............. 724 50% OGX / 50% PERENCO(1)
BM-ES-40.............. 723 50% OGX / 50% PERENCO(1)
BM-ES-41.............. 723 50% OGX / 50% PERENCO(1)
Total...................................3,620 -
(1) Exploration blocks that will be operated by Perenco
Pará-Maranhão Basin
Although no commercial discovery has yet been announced, we believe that there is significant potential in the Pará-Maranhão Basin, given that the geologic features present are similar to those in Ghana (West Africa), where there have been important discoveries of light oil in recent years. The Pará Maranhão Basin has a total sedimentary area of approximately 100,000 km² (24.7 million acres).
We currently have concession rights to five exploration blocks in the Pará-Maranhão Basin, covering a total acreage of 960 km² (237,221 acres). Past drilling activity in the region, near to three of our exploration blocks, detected the presence of light oil. Based on information derived from the Prospective Resources Report prepared by DeGolyer & MacNaughton in September 2009, our exploration blocks in the Pará-Maranhão Basin contain Net Risked Prospective Resources (mean estimate) of 447 million boe, assuming a probability of success of 21.3%.
The table below shows our exploration blocks in the Pará-Maranhão Basin:
Exploration blocks Gross acreage (km²) Participating interests (%)
_______________ ____________ __________________________
BM-PAMA-13...... 192 100% OGX
BM-PAMA-14...... 192 100% OGX
BM-PAMA-15...... 192 100% OGX
BM-PAMA-16...... 192 100% OGX
BM-PAMA-17...... 192 100% OGX
Total 960 -
Parnaíba Basin
The Parnaíba Basin, located in the northeast of Brazil, has a total sedimentary area of approximately 680,000 km that stretches across the states of Maranhão, Piauí, Tocantins and, to a lesser extent, the states of Pará, Ceará and Bahia. The Basin is bordered to the north by the São Luís and Barreirinhas Basins, to the northwest by the Marajó Basin and to the south by the São Francisco Basin. The maximum thickness of the Basin´s sedimentary column is estimated at approximately 3,500 meters.
OGX currently has a 70% participating interest in seven exploration blocks in the Parnaíba Basin, covering a total area in excess of 20,000 km². These interests were acquired from Petra Energia Ltda., which retains a 30% working interest in each of the blocks. These blocks’ potential for gas production is thought to be substantial given the drilling of a well there in 1987 which resulted in the detection of hydrocarbons. In parallel to the present acquisition, OGX S.A. and MPX Energia S.A. signed a Memorandum of Understanding formalizing the intention of transferring the participation, already approved by ANP, to OGX Maranhão Ltda., a new special purpose vehicle, in which OGX S.A, the operator, holds 66.7% and MPX 33.3% of the capital. This document also formalizes the intention to execute an agreement for the SPV to supply natural gas to thermoelectric plants to be developed by MPX in association with Petra, which could guarantee demand for up to the entire quantity produced in the Blocks.
According to the Prospective Resources Report prepared by DeGolyer & MacNaughton in September 2009, our exploration blocks in the Pará-Maranhão Basin contain Net Risked Prospective Resources (mean estimate) of 26 million boe, assuming a probability of success of 19.9%. It is worth highlighting that this study has considered very few available seismic lines. While these blocks comprise approximately 21,500 km² of acreage, only 1,200 km of 2D seismic data originally acquired in the 1980’s was available. A Contingent Resources Report has also been issued by DeGolyer & MacNaughton, certifying a preliminary estimate of 141 million barrels of Net Contingent Resources, based on data derived from the single well drilled in 1987 on block PN-T-68, where hydrocarbons were discovered.
The table below shows our exploration blocks in the Parnaíba Basin:
Exploration blocks Gross acreage (km²) Participating interests (%)
_______________ ____________ __________________________
PN-T-48.............. 3,069 70% OGX Maranhão Ltda.
PN-T-49.............. 3,069 70% OGX Maranhão Ltda.
PN-T-50.............. 3,069 70% OGX Maranhão Ltda.
PN-T-67.............. 3,067 70% OGX Maranhão Ltda.
PN-T-68.............. 3,067 70% OGX Maranhão Ltda.
PN-T-84.............. 3,065 70% OGX Maranhão Ltda.
PN-T-65.............. 3,065 70% OGX Maranhão Ltda.
Total 21.471 -
Colombia
Middle Magdalena Valley Basin:
The Middle Magdalena Valley basin has an area of approximately 33,000 km ² and is located along the central valley of the Magdalena River between the Eastern Cordillera of the Colombian Andes. It is known as a mature producing basin where 51 oil fields have been discovered, including the La Cira-Infantas, the first giant field in Colombia.
OGX acquired concession rights, holding 100% working interest, in one block in the basin, called VMM-26, comprising a total area of 405.5 km ².
Lower Magdalena Valley Basin:
The Lower Magdalena Valley basin covers a total area of approximately 38,000 km ² located on the shores of the Caribbean Sea. This basin is in the initial phase of exploration showing a great potential evidenced by the existence of oil fields producing oil and gas.
OGX acquired concession rights, holding 100% working interest, in one block in the basin, called VIM-5, comprising a total area of 2,583.9 km ².
Cesar-Ranchería Basin :
The Cesar-Ranchería Basin has an area of approximately 12,000 km ² and is located on the border with Venezuela. This basin is considered a new frontier with few wells drilled so far, where there was found evidence of oil and gas. Tests conducted on these wells indicated the presence of oil between 27-42 ° API.
OGX acquired concession rights, holding 100% working interest, in three blocks in this basin, called CR-2, CR-3 and CR-4, comprising a total area of 9,591.3 km ².
Last Update on June 22, 2010.