OGX Petróleo e Gás Participações S.A. (“OGX”) (Bovespa: OGXP3; OTC: OGXPY.PK), Brazil’s largest private oil and natural gas exploration company, announced today that it has entered into an agreement with Petrobras to acquire a 40% participating interest in Block BS-4, located in the Santos Basin.
The purchase and sale is subject to National Petroleum, Natural Gas and Biofuels Agency (ANP) approval.
"We are very pleased with this acquisition, which demonstrates that OGX is aware of business opportunities in Brazil that can contribute to the growth of our portfolio," said Luiz Carneiro, Chief Executive Officer of OGX.
The remaining concession rights for Block BS-4 belong to a consortium formed by Queiroz Galvão Exploração e Produção SA, which holds the operatorship and a 30% participating interest, and Barra Energia do Brasil Petróleo e Gás Ltda., which also holds a 30% participating interest. These stakes remain unchanged.
The acquisition price for OGX’s 40% stake in the Block BS-4 was US$270 million.
The BS-4 block encompasses two post-salt oil fields known as Atlanta and Oliva. The fields are located 185 kilometers off the Brazilian coast at a water depth of approximately 1,500 meters, with oil quality from 14º to 16º API. The recently revised Development Plans of the fields are under analysis by ANP.
OGX Petróleo e Gás SA is focused on oil and natural gas exploration and production and is conducting the largest private sector exploratory campaign in Brazil. OGX has a diversified, high-potential portfolio, comprised of 28 exploratory blocks in the Campos, Santos, Espírito Santo, Pará-Maranhão and Parnaíba Basins, in Brazil, and 5 exploratory blocks in Colombia, in Lower Magdalena Valley and in Cesar-Ranchería basins. The total extension area is of approximately 5,700 km² in sea and approximately 36,900 km² in land, with 24,500 km² in Brazil and 12,400 km² in Colombia. OGX relies on an experienced management team and holds a solid cash position, with approximately US$2.5 billion in cash (as of September, 2012) to fund its E&P investments and new opportunities. In June 2008, the company went public raising R$6.7 billion, the largest amount ever raised in a Brazilian primary IPO at that moment. OGX is a member of the EBX Group, an industrial group founded and under the leadership of Brazilian entrepreneur Eike F. Batista, who has a proven track record in developing new ventures in the natural resources and infrastructure sectors. For more information, please visit www.ogx.com.br/ir.
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