OGX discovers presence of hydrocarbons on block BM-C-40

OGX has made a new discovery while reviewing the column and net pay section of the Albian. The discovery was made in the same section of well 1-RJS-OGX-14, located on block BM-C-40, in the shallow waters of the southern part of Campos Basin, Brazil. OGX is the sole owner of BM-C-40, holding a 100 per cent stake in the block.

The oil producer found presence of hydrocarbons in the Albian section of the well, and has since carried out extensive research including drilling, logging, sampling and pre -tests in order to gain a better a understanding, and identification, of the discovery. The column and the net pay of discovery previously announced were reviewed from 60 to nearly 90 meters, and from 22 to about 35 meters respectively. Additionally, OGX have identified a new oil column of about 55 meters and net pay around 27 meters in carbonate reservoirs.

"The size of discoveries made this well reinforces the importance of our blocks located further north in the Campos Basin. This result is so good that additional drilling in this area became a priority," said OXG General Director, Paulo Mendonça.

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OXG discovers crude oil off Brazil's coastline

OGX has announced that it has discovered signs of crude oil off Brazil's coastline, and that it intends to start producing in 2011 at a rate of about 20,000 b/d.

The discovery was made in the BM-S-29 block in shallow waters of the Santos Basin, about 130km off the coast of Sao Paulo. Brazilian billionaire, Eike Batista,who owns 62 per cent of OGX, has said that he will put in $4 billion into the operation, and expects to see first output toward the end of 2011.

Talking about OGX's plans, chief executive, Paulo Mendonca, said that the company is actively "studying the whole of Brazil for new acquisitions," and that even though OGX is "a long way off pre-salt," it awaits the right opportunity to "re-enter the pre-salt" sector.

The new discovery promises to be a success, with projected output expected to grow to 730,000 b/d in 2015, and subsequently to 1.4 million. According to Batista large international oil companies, including several from China, have approached OGX about the possibility of partnering up for oil drilling.

"The Chinese are interested in investing in the offshore subsalt oil area in Brazil. They've already taken a look at it," Batista told reporters at an event in Rio de Janeiro.

Source: Bloomberg

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