OGX Concludes Drill-Stem Test in Santos Basin

- OGX Concludes Drill-Stem Test in Santos Basin

Monday, August 29, 2011
OGX S.A.

OGX has concluded the drill-stem test performed in the Santonian section of well 1-OGX-47-RJS, in the BM-S-59 block, in the shallow waters of the Santos Basin. OGX has a 100% interest in this block.

"With a successful exploration campaign underway in the Santos Basin, we initiated the drill-stem test phase. This is the first of a series of tests which has obtained significant productivity data from our sandstone reservoirs and represents an important step in broadening our understanding of this basin and in beginning the development of this area," commented Paulo Mendonça, OGX's General Executive Officer and Exploration Officer.

Following the discovery announced on July 1, 2011, a drill-stem test was performed in a vertical well in the Maceió accumulation. Besides the presence of gas, the test confirmed the existence of condensate of about 50° API that should account for around 20% of the hydrocarbon volume of this structure. The results of this test, with three production intervals, indicate a production potential of 1 million cubic meters per day in a vertical well, which could reach 2.5 million cubic meters per day in a horizontal well, both at Absolute Open Flow.

The test information is extremely important to the Company, because when combined with the accumulations of Natal (OGX-11), which will be the next well to be tested, and Aracaju (OGX-19), which will be tested in a Discovery Appraisal Plan, indicate the existence of one more important gas and condensate region in Brazil.

The well OGX-47, named 'Maceió', is located in the BM-S-59 block and is situated approximately 110 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 185 meters. The Ocean Quest rig initiated drilling activities on May 24, 2011.

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