OGX Announces the Presence of Hydrocarbons in Well OGX-19

Source: www.gulfoilandgas.com 9/30/2010, Location: South America

OGX has identified hydrocarbons indicative of light oil and gas in the Santonian section of well 1-OGX-19A-RJS, located in the BM-S-58 block, in the shallow waters of the Santos Basin. OGX holds a 100% working interest in this block.

“This new discovery confirms the existence of an important play in the Santonian age of our Santos basin blocks, revealing the presence of light hydrocarbons in sandstone reservoirs of good porosity. This play initially identified through the drilling of well OGX-11, is an excellent example of OGX’s ability to open new exploratory frontiers,” commented Paulo Mendonça, General Executive Officer of OGX.

An oil column of about 145 meters with approximately 40 meters of net pay was encountered in sandstone reservoirs in the Santonian section of well OGX-19A, also known as the Aracaju prospect. The drilling of the well is still in progress and is expected to be drilled to a maximum final depth of approximately 5,250 meters.

The OGX-19 well, located in the BM-S-58 block, is situated approximately 112 kilometers off the coast at a water depth of approximately 172 meters. The rig Ocean Quest initiated drilling activities there on August 13, 2010.


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