OGX has identified the presence of hydrocarbons in the Albian and Santonian sections of well 1-OGX-18-RJS, located in the BM-C-40 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

"The OGX-18 well is located 2 kilometers away from OGX-14, the Peró prospect. The proximity of these discoveries, combined with the fact that the Albian section of this well is structurally 56 meters higher than at OGX-14, points to a potentially superior column than the one already encountered in this block. This discovery reinforces our belief in the attractiveness of the northern blocks in the Campos basin, and could indicate a new province of great importance to our Company," commented Paulo Mendonça, General Executive Officer of OGX.

To date, an oil column of approximately 12 meters was encountered in carbonate reservoirs in the Albian section of well OGX-18, also known as Ingá. The well was in a hydrocarbon zone when drilling was interrupted due to sampling. It will resume drilling in order to determine the total column and net pay.

Additionally in the Santonian section, high porosity sands with hydrocarbons were encountered. The drilling of well OGX-18 is still in progress and is expected to continue to a maximum final depth of approximately 2,800 meters.

The OGX-18 well, located in the BM-C-40 block, is situated approximately 95km off the coast of the state of Rio de Janeiro at a water depth of approximately 105 meters. The rig, Ocean Lexington, initiated drilling activities there on July 29, 2010.

Tags: OGX Petroleo e Gas Participacoes SA