OGX announces the acquisition, through its subsidiary OGX Petoleo e Gas Ltda., of a 70% participation interest in seven onshore exploratory blocks located in the Parnaiba Basin, in the state of Maranhao. The approval of this acquisition was published on the website of the national regulatory agency (ANP), on September 24, 2009. The Participation was acquired from Petra Energia S.A., which retains a 30% working interest in the Blocks.
In parallel to the present acquisition, OGX S.A. and MPX Energia S.A. signed a Memorandum of Understanding formalizing the intention of transferring, subject to ANP approval, the Participation to a new special purpose vehicle (SPV), in which OGX S.A, the operator, would hold 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.
The acquisition requires payment to Petra of the amount equivalent to the signature bonus and 100% of the costs and guarantees related to the Minimum Exploratory Program of the first exploratory period. All of the cost would be allocated to OGX S.A. and MPX in the proportion of their stakes in the capital of the newly-formed SPV.
“This acquisition confirms OGX´s commitment to expanding its portfolio through the addition of low risk and high exploratory potential assets. The Parna?ba Basin is considered a high potential new frontier for onshore gas production. We will continue to study other acquisition opportunities with the intention of expanding our portfolio with value adding assets”, affirmed Paulo Mendonça, General Executive Officer.
The Blocks are located in a new frontier basin, extend over a territory of 21,471 km² and present relevant potential of gas production, confirmed by a well drilled in 1987 where evidence of hydrocarbon was found.