40
Management Presentation
Management Presentation
2
This presentation uses the terms “potential petroleum quantities”, “prospective resources” and “contingent resources” to describe those quantities of
petroleum that are potentially recoverable from accumulations yet to be discovered. Because of the uncertainty of commerciality and lack of sufficient
exploration drilling, and the lack of identified prospects, leads, or future development and exploration projects, the potential petroleum quantities estimated
herein cannot be classified as prospective resources, contingent resources or reserves, and the prospective resources and contingent resources cannot be
classified as reserves. Investors are advised that the U.S. Securities and Exchange Commission (SEC) and other international securities regulators do not
recognize potential petroleum quantities and prospective and contingent resources. There is no certainty that any portion of the potential petroleum
quantities or prospective resources will be discovered and, if discovered, whether they could be developed economically. Therefore, investors are cautioned
not to assume that all or any part of OGX’s potential petroleum quantities or prospective resources exist, or that they can be developed economically.
Accordingly, information concerning potential petroleum quantities and prospective and contingent resources contained in this presentation are not
comparable to information permitted to be made public by U.S. or other international companies subject to SEC reporting and disclosure requirements,
especially Regulation S-K under the Securities Act.
Certain of the information and conclusions set forth herein are based on projections. These projections were prepared for the limited purpose of analyzing the
potential risks and benefits of an investment in the securities by illustrating under certain limited assumptions projected capital and operating expenditures,
installed production capacity, expected production, and number of wells drilled. In addition, because of the subjective judgments and inherent uncertainties of
projections and because the projections are based on a number of assumptions, which are subject to significant uncertainties and contingencies that are
beyond the control of OGX, there can be no assurance that the projections or conclusions derived therefrom will be realized. Under no circumstances should
the projections set forth herein be regarded as a representation, warranty or prediction that OGX will achieve or is likely to achieve any particular future result.
There can be no assurance that OGX’s future results or projections will not vary significantly from those set forth herein. Accordingly, investors may lose all of
their investment to the extent the projections or conclusions included herein are not ultimately realized.
This presentation also contains forward-looking statements, which may be identified by such words as "may", "plans", "expects", "believes" and similar
expressions, or by their context. These statements are made on the basis of current knowledge and, by their nature, involve numerous assumptions and
uncertainties.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor
anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of
this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.
Various factors could cause OGX's actual future results, performance or events to differ materially from those described in this presentation. In no event shall
OGX or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business
carried out based on the information and statements that appear in this presentation, or for indirect damage, lost profit or related issues. OGX does not intend
to provide to potential shareholders with a revision of the statements or an analysis of the differences between the statements and the actual results. You are
urged to carefully review OGX's offering circular, including the risk factors included therein. This presentation does not purport to be all-inclusive or to contain
all the information that a prospective investor may desire in evaluating OGX. Each investor must conduct and rely on its own evaluation, including of the
associated risks, in making an investment decision.
Disclaimer
3
Agenda
OGX Overview
OGX Portfolio
OGX Operations
Path to Production
Financial Overview
Appendix
Last update: 05/18/11
OGX Overview
World-class E&P portfolio with
multi-billion barrels of discoveries
mostly in shallow waters and
onshore
OGX Positioning
5
Solid cash position to support
exploratory commitment and
beginning of production
Experienced management team with proved execution capability
All key equipment already secured from leading worldwide suppliers for exploration and initial production
1 2
4 3
OGX Main Accomplishments
6
PROVEN EXECUTION CAPABILITY (FROM CONCEPT TO FIRST OIL IN UNPRECEDENTED TIMING) WITH FULLY ESTABLISHED OPERATIONS COMPRISING MORE THAN 5,000 PEOPLE
OGX Creation
US$1.3 bnraised through an equity Private Placement
21 blocks acquired during the 9th
Bidding Round
Jul/07Nov/07
Jun/08
IPO: US$4.1 bn raised
Aug/09
Jan/10
Bond: US$ 2.6bn raised41 wells drilled with oil/gas
Beginning of thedrilling campaign
Acquisition of 70% stake in the Parnaíba Assets
Jun/10
High productivity horizontal well
Feb/11
OGX included in the Ibovespa Index
FPSO secured for 20 years
Survey and interpretation of the 3D seismic data
Procurement of all equipment and services necessary to initiate the drilling campaign
Apr/11
5 onshore blocks acquired in Colombia
May/11
OSX-1 and initial production
Oct/11
Sep/09
Updated OGX portfolio to 10.8 bn(1)
boe of potential resources
Total investments
of US$ 3.2 bn of
Drilling Capex and
Bonus Signature +
US$ 218 M of
Seismic Campaign
Total equity raised
to date: US$5.4 bn
(1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports
70%100%
Petróleo e Gás Ltda.
62% 38%
(1)
Petróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$30 Billion)
99.99%
Free Float
Free Float
Maranhão Petróleo e Gás Ltda.
66.67% (4)
OGX Ownership and Corporate Structure
7
(1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”)(2) OGX as operator(3) Market data as of May 17th(4) MPX S.A. holds 33.33%
• Daily traded average volume (1 month): ~ US$184 million
• ~33 thousand investors
• 3rd most representative stock in Ibovespa index
4.1%
• Most liquid common share
OGX Campos Petróleo e Gás S.A.
30%
99.99%
7 Blocks
7 - Parnaiba (70%) (2)
7 Blocks
5 - Campos (100%) (2)
2 - Campos (50%)
20 Blocks
5 - Santos (100%) (2)
5 - Espirito Santo (50%)
5 - PAMA (100%) (2)
5 - Colombia (100%) (2)
100%
Management Organization Structure (1)
HIGHLY SUCCESSFUL AND COMMITTED MANAGEMENT TEAM,
COMBINING UNIQUE INTELLECTUAL CAPITAL AND SUPERIOR EXECUTION SKILLS
Oil & Gas CommercializationJoaquim Dib Cohen (32)
Gen. Exec. OfficerPaulo Mendonça (38)
Exploration OfficerPaulo Mendonça (38)
General Counsel José Roberto Faveret
CFOMarcelo Torres
Production OfficerReinaldo Belotti (34)
CEOEike Batista
Exploration Campos-ESPaulo Ricardo (28)
Reservoir & ReservesRoberto Toledo (31)
Onshore BasinCelso Martins (34)
ProcurementOlavo Foerch (32)
DrillingRicardo Juiniti (27)
LogisticsBilly Pinheiro (30)
Production DevelopmentJosé Brito (42)
InternationalErnani Posrche (33)
Geological OperationsMoacir Santos (38)
ProductionRicardo Abiramia (24)
E&P LaboratoryDolores Carvalho (35)
Applied TechnologyMarcos Amaral (28)
New Areas Executive ManagerPaulo de Tarso Guimarães (34)
Exploration Santos and Eq. MarginEdmundo Marques (24)
Strategic AlliancesLuiz Reis (45)
HSELeandro Leme (31)
8(1) Parentheses represent years experience in the E&P industry
Highly Qualified Exploration Team
PBR success index
Exploratory Team
Paulo Mendonça led the Petrobras exploration team from 2002 to 2007
Success index in excess of 60% on average offshore Brazil from 2002-2007 whilst at Petrobras
Over 10 billion boe and more than 50 new fields discovered
PROVEN TRACK RECORD HAVING OPENED SEVERAL NEW OIL FRONTIERS, INCLUDING THE PRE-SALT, AND DISCOVERING OVER 50 NEW OIL FIELDS
9
Brazil: Vast Untapped Oil & Gas Potential
10
Country Historical Oil & Gas Production (bn boe)
USA (1900-2010) 440
EX-USSR(1900-2010) 335
SAUDI ARABIA(1938-2010) 145
BRAZIL (1941-2010) 14.5
Source: EIA-DOE, BP Statistical Review of World Energy 2010, Saudi Aramco, UPPSALA University, Petrobras, ANP and OGX analysis
Source: ANP
Still significantly under-explored
Oil & gas in the world
Oil and Gas Discovered Volumes2000 – 2010 (Bn boe)
Source: IHS
Largest oil and gas discoveries in the world
Source: BP Statistical Review of World Energy 2010 & analyst estimates
New provinces could propel Brazil into top reserves holders
Oil Resources - December 2009 (Bn bbl)
% of sedimentary basins under concession
0 10 20 30 40
Bn Boe
Brazil
Turkmenistan
Iran
Kazakhstan
China
Russia
Australia
Kuwait
Israel
Saudi Arabia
India
Indonesia
Venezuela
Papua
New Guinea
Ghana
+ 35 bn boe 265
172
138
115
102
100
98
74
44
40
37
33
28
27
15
14
13
Saudi Arabia
Venezuela
Iran
Iraq
Kuwait
Brazil post Tupi
UAE
Russia
Libya
Kazakhstan
Nigeria
Canada
US
Qatar
China
Angola
Brazil
Licensed 4%
BRAZIL’S HISTORICAL UNDER-EXPLORATION UNDERPINS MASSIVE GROWTH OPPORTUNITIES FOR OGX
Unlicensed 96%
OGX Portfolio
34 blocks: 29 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 3 Colombian sedimentary basins
Unique portfolio with 10.8 billion potential recoverable barrels of oil equivalent (boer)
OGX’s business plan is based on 4.1 billion barrels already discovered in the shallow waters of the Campos Basin
OGX’s Portfolio
Portfolio
Deep water~1,000m
Shallow water~150m
Shallow water~120m
Shallow water~60m
12
Campos Basin: Low Risk, Shallow Water and Large Volumes
5.7 bn bbl of net 3C, net delineation and net mean risked prospective resources, evaluated by D&M (pre-salt not included)
5 blocks operated by OGX (100% owned) and 2 operated by Maersk Oil (50% owned)
Total area of 1,177 km2
Average water depth of ~120m
100% success rate
Campos Basin
OGX’S DISCOVERED ACCUMULATIONS CONFIRM A NEW HYDROCARBON PROVINCE IN THE SOUTHERN CAMPOS BASIN
13
Campos Basin: 2011 Drilling Activities
OGX wells•Wells drilled previously
MULTI-BILLION DISCOVERIES AND 100% SUCCESS RATE IN SHALLOW WATERS IN THE CAMPOS BASIN WITH HIGH PRODUCTIVITY RESERVOIRS AMONG THE BEST IN BRAZIL (40K BBL/DAY IN WAIMEA)
14
OGX-35
OGX-36
OGX-39HP
OGX-40D
OGX-41D
OGX-42D
OGX-43D
OGX-44HP
OGX-45D
Appraisal7 shallow water blocks in South Campos (lower cost & faster execution)
37 drilled wells: 32 concluded and 5 in progress
100% success ratio and multi-layer discoveries
Focus on the appraisal campaign with vertical and horizontal drilling
Several drill-stem tests confirming reservoirs high productivity
1st oil at Waimea (OGX-26) on track
FPSO OSX-1 and submersible equipment secured
Summary
OGX-25/27P
OGX-28D
OGX-31
OGX-33
MRK-3/4P
MRK-5
Discoveries
15
Santos Basin: High Potential
Santos Basin
1.8 bn boe of net risked prospective resources (POS of 27%), evaluated by D&M
5 blocks operated by OGX (100% owned)
Total area of 820 km²
Average water depth of ~150 m
5 discoveries
~ 63% success rate (8 concluded wells)
SANTOS BASIN IS ONE OF THE MOST PROMISING EXPLORATORY AREAS IN BRAZIL, WITH SIGNIFICANT POTENTIAL FOR GAS AND LIGHT OIL
NEW FRONTIER BASIN WITH HIGH POTENTIAL FOR GAS PRODUCTION
Parnaíba basin
16
Parnaíba Basin: Major Gas Province
1.0 bn boe of net risked mean prospective resources POS (17%) and net 3C, evaluated by D&M
7 blocks operated by OGX (47% owned)
Total area of 21,500 km²
Monetization of gas through thermoelectric plants to be developed by MPX/Petra (1,863 MW already licensed)
100% success rate (4 wells drilled)
Commerciality declared for 2 accumulations
17
Pará Maranhão Basin: Promising New Frontier
Pará-Maranhão Basin
447 mn boe of net mean risked prospective resources (POS of 21%), evaluated by D&M
5 blocks operated by OGX (100% owned)
Total area of 960 km²
Average water depth of ~60m
1st well to be drilled in 2Q11
NEW FRONTIER WITH GEOLOGICAL MODEL SIMILAR TO WEST AFRICA, WHERE SIGNIFICANT DISCOVERIES WERE MADE RECENTLY
18
Espírito Santo Basin: New Frontier in Deep Water
Espírito Santo Basin
817 mn boe of net mean risked prospective resources (POS of 33%), evaluated by D&M
5 blocks operated by Perenco (50% owned)
Total area of 3,620 km²
Average water depth of ~1,000 m
1st well to be drilled in 2H11
THE NEW FRONTIER OF ESPÍRITO SANTO HAS PROVEN TO BE A VERY ACTIVE PETROLIFIC SYSTEM
19
Colombia: Cesar-Ranchería, Middle and Lower Magdalena Valleys: Great Upside Potential
MARACAIBO
BASIN
Colombian Basins
1.1 bn boe of net prospective resources and net potential petroleum quantities, evaluated by D&M
5 blocks operated by OGX (100% owned), 3 of which are located close to Maracaibo Basin (~80 bnboe discovered and ~50 bnboe already produced)
Beginning of the Seismic Campaign in 2H11
BALANCED PORTFOLIO OF EXPLORATORY ASSETS, COMBINING PRODUCTION REGIONS WITH LESS EXPLORED AREAS NEXT TO THE MARACAIBO BASIN, ONE OF THE MOST PROLIFIC PROVINCES IN THE WORLD
OGX Portfolio Potential: Breakdown
79%
Oil
21%
Gas
73%
Shallow
Water
19%
Onshore
8%
Deep
Water
Portfolio Breakdown
OIL DISCOVERIES OF 4.1 BN BBL ARE ALREADY UNDER PRODUCTION DEVELOPMENT IN THE SHALLOW WATERS OF CAMPOS BASIN
OGX Portfolio Potential(1)
billion boe (7)OGX
Net
CAMPOS 5.7
Contingent (2)3.0
Delineation (3)1.3
Prospective (POS = 56.2%) 1.4
SANTOS (4)(6) (POS = 27.0%) 1.8
ESPÍRITO SANTO(4) (POS = 32.6%) 0.8
PARÁ-MARANHÃO(4) (POS = 21.3%) 0.4
PARNAÍBA 1.0
Contingent (2)0.1
Conventional Prospective (POS = 5.0%) 0.6
Unconventional Prospective (POS = 13.7%) 0.4
COLOMBIA 1.1
Prospective (POS = 10.4%)(4) 0.1
Potential Petroleum Quantities(5)1.0
OGX Portfolio 10.8
20
Note: “POS “ defined as geological probability of success
(1) The OGX portfolio potential was calculated by OGX based on volume estimates contained in the DeGolyer and MacNaughton Reports
(2) We consider the 3C contingent resources in the arithmetic summation of our potential portfolio based on the assumption that these resources will be converted to 2C and 1C resources after the appraisal campaign and that they will be converted into reserves after the removal of contingencies
(3) We consider the high estimate and not Pg-adjusted delineation area prospective resources as we believe the delineation area is part of the 3C area
(4) Prospective resources mean estimates Pg-adjusted. Colombia considered two Colombian basins, the Lower and Middle Magdalena Valleys Basins(5) Includes petroleum potential quantities in one Colombian basin, the Cesar-Ranchería Basin(6) OGX net interests in the table are not the same as OGX net interests contained in the DeGolyer and MacNaughton September 2009 report due to the fact that OGX now holds 100% of the interests in the concessions included in that report
(7) Gas volumes were converted by OGX to barrels of oil, using a conversion rate of 5,615 ft³ of natural gas to one boe
OGX Operations
BCH-05E (BCH):Daily Rate: US$ 31.5kMax. well depth: 11,500 ftContract Expires: Feb.2012
3rd rig being contracted
Onshore Drilling
Exploration Drilling Campaign
Offshore Drilling
Ocean Lexington (Diamond):
Daily Rate: US$ 335k
Max. well depth: 20,000 ft
Contract Expires: Feb.2013 (+one optional year)
Ocean Ambassador (Diamond):
Daily Rate: US$ 260k
Max. well depth: 20,000 ft
Contract Expires: Sep.2012 (+ one optional year)
Ocean Quest (Diamond):
Daily Rate: US$ 270k
Max. well depth: 25,000 ft
Contract expires: Dec.2012 (+ one optional year)
Sea Explorer (Pride):
Daily Rate: US$ 265k
Max. well depth : 20,000 ft
Contract Expires: Nov.2011 (+two optional years)
Ocean Star (Diamond):
Daily Rate: US$ 310k
Max. well depth: 25,000 ft
Contract Expires: Feb.2013 (+ one optional year)
Pride Venezuela (Pride):
Daily Rate: US$ 265k
Max. well depth: 20,000 ft
Contract Expires: Nov.2011
Ocean Scepter (Diamond):
Daily Rate: US$ 135k
Max. well depth: 30,000 ft
Contract Expires: Jan.2012 (+one optional year)
Wildcat + Appraisal Wells 2009 2010 2011 2012 2013 Total
Campos 5 18 18 4 0 45
Santos 1 6 3 4 0 14
Espírito Santo 0 0 2 3 1 6
Pará Maranhão 0 0 3 3 1 7
Parnaíba 0 2 9 4 0 15
Total 6 26 35 18 2 87
DRILLING CAMPAIGN EXPANDED – 8 RIGS ALREADY OPERATING SIMULTANEOUSLY 22
QG-1 (Queiroz Galvão):Daily Rate: US$ 28kMax. well depth: 14,750 ftContract Expires: Jan.2012
FIRST CLASS SUPPLIERS
HIGH QUALIFIED TEAM
LOGISTICS OPERATIONAL SUPPORT
PLATFORM SUPPLY VESSEL (PSV)
QUANTITY:5
CONTRACTOR: EDISON CHOUEST/ TIDE WATER
ANCHOR HANDLING TUG SUPPLY (AHTS)
QUANTITY: 6
CONTRACTOR: EDISON CHOUEST/NORSKAN/MAERSK
FAST SUPPLY VESSEL (FSV)
QUANTITY: 1
CONTRACTOR: EDISON CHOUEST
MID SIZE HELICOPTER
QUANTITY: 4
CONTRACTOR: AERÓLEO
OGX Team: ~250 employees
Over 5,000 people dedicated
3D Room / IOSC
23
Operational Capabilities and Structure
EFFICIENCY,
AGILITY AND
OPERATIONAL
SECURITY
Path to Production
25
Campos Basin: OGX-26 - First Production Well
THE RESULTS OBTAINED IN THE DRILLING OF THIS WELL VALIDATE THE GEOLOGICAL MODEL AND CONFIRM THE RELEVANCE OF THE CARBONATE PROVINCE DISCOVERED BY OGX IN THE SOUTHERN PART OF THE CAMPOS BASIN
OGX will begin production by Oct/11 with an extended
well test (EWT) in the Waimea accumulation (OGX-26)
producing up to 20,000 barrels per day
OGX-26 is located in the shallow waters in the Campos
Basin (134m) and 84 km off the coast
One of the best drill-stem tests ever performed in Brazil,
which confirmed an excellent productivity index (PI) of
100 m3/day/kgf/cm2
Production potential of 40,000 barrels per day in
definitive development phase
Oil gravity of 20⁰ API
State-of-the-art drilling technology: 1,000 meters of
horizontal extension
Production concept for this well utilizes off-the-shelf
technology
Confirms high productivity in the Campos carbonates
Campos Basin: OGX-26 Defined Production Concept
26
Production concept
Horizontal Well (OGX-26) already drilled and successfully tested
Well completed and wet christmas tree installed
Buoy anchor system and flexible lines already delivered
Extended Well Test (EWT) approved by ANP (National Petroleum Agency)
FPSO (OSX-1) arrival expected by mid-2011
All critical equipment and services already secured
Two additional horizontal production wells to be connected in 2012
OSX - 1
EWT WILL HAVE A WET CHRISTMAS TREE AND FLEXIBLE LINES DIRECTLY CONNECTED TO THE FPSO OSX‐1 AND AN OIL FLOW RATE OF UP TO 20,000 BARRELS PER DAY
Aker Wayfarer Vessel
Wet Christmas Tree
Flexible Lines
FPSO OSX-1
Campos Basin: Equipment Secured
27
Equipment
Wet Christmas Tree (WCT): Already installed
Umbilical Terminal Assembly (UTA): Contracted
Hydraulic Power Unit (HPU): Delivered in April,
2011
Flexible Lines: Contracted with Wellstream
Electrical Submersible Pump (ESP): Contracted
with Baker
Services
Installation Vessel – Anchor System, Flexible Lines and
Umbilicals: Contracted with WS and Aker
Mud line and Subsurface analysis for FPSO mooring
and WHP piles: Contracted with FUGRO – already
completed
Waimea Area Survey: Contracted with FUGRO
Critical equipment and services status Main equipment in place
80 kbpd of processing
capacity & 950,000 barrels of
storage capacity
Expected arrival: Mid 2011
Already installed
Produced by GE Oil & Gas
Already manufactured
Produced by Wellstream
Contracted with Aker
Campos Basin: Development Concept
OPERATIONAL EXPENDITURES (~US$16/boe)(Leased Equipment)
Capital Expenditures (~US$2/boe)
FPSOOil capacity: 100 K bpd
Liquid capacity: 160 K bpdOil will be offloaded
WHPCapacity: 30 wellsDrilling package ontopside
Drilling + CompletionDevelopment wells dry and wet completionsGas will be reinjected, used for gas lift or power generationWater Injection
WHP Subsea Flow LinesPower line
Gas Lift lineService line
Water Injection lineProduction line
Test line
28
FPSOs and WHPs Expected Physical Deliveries
OSX-1 to be delivered in August 2011
OSX-2 and OSX-3 to be built in Singaporean world class shipyards by SBM and Modec
OSX-4 and OSX-5 hulls already acquired by OSX
OSX-1
OSX-2
OSX-3
OSX-4
OSX-5
OSX-6
OSX-7
OSX-8
OSX-9
OSX-10
OSX-11
OSX-12
Unit 2011 … 2013 2014 2015 2016
WHP-1 and WHP-2 with detailed engineering ongoing (EPC awarded to Techint by OSX)
Unit 2013 2014
WHP-1
WHP-2
WHP-3
WHP-4
WHP-5
WHP-6
WHP-7
WHP-8
WHP-9
WHP-10
WHP-11
3rd Q
1st Q
1st Q
4th Q
1st Q
3rd Q
4th Q
4th Q
4th Q
2nd Q
3rd Q
2nd Q
1st Q
2nd Q
3rd Q
4th Q
4th Q
4th Q
1st Q
2nd Q
3rd Q
4th Q
4th Q
WHPsFPSOs
29Secured Production Equipment
Secured Production Equipment
FPSOs WHPs
OSX-1:
Production capacity of 80
kbpd and storage of 950
kbbl
Average Day rate of US$
263 k
Arrival expected to
Aug/11
Waimea
OSX-2:
Production capacity of
100 kbpd and storage of
1.3 Mbbl
Expected Average day
rate of US$ 290 k
EPCI contract - LOI
executed by OSX and SBM
Planned for Waimea
OSX-3:
Production capacity of
100 kbpd and storage of
1.3 Mbbl
Expected Average day
rate of US$ 290 k
LOI already signed by OSX
with MODEC
Planned for Waikiki
WHP-1:
Capacity to drill up to 30 wells
Four pre-drilled horizontal
production wells at delivery
Detailed engineering ongoing
(EPC awarded to Techint by OSX)
WHP-2:
Capacity to drill up to 30 wells
Three pre-drilled horizontal
production wells at delivery
Detailed engineering ongoing
(EPC awarded to Techint by OSX)OSX-4:
Production capacity of
100 kbpd and storage of
1.3 Mbbl
Order placed for leasing
contract and EPCI under
procurement
OSX-5:
Production capacity of
100 kbpd and storage of
1.3 Mbbl
Order placed for Leasing
contract and EPCI under
procurement
Two sister VLCCs
(Very Large Crude
Oil Carriers)
purchased in
November, 2010
by OSX, to be
converted into
FPSOs
30
Wells
31
Parnaíba Basin: Project Development
Parnaíba Development Schematic
MPX + Petrainvestments
OGX Maranhão (70%) + Petra (30%) investments
Manifolds
Gas Pipeline
Gas Thermal Power Plant
Transmission Lines
Production Facility for dry gas
Gathering System
Lines
THE ENERGY GENERATED BY MPX’S POWER PLANTS WILL BE SOLD TO FREE OR REGULATED ENERGY MARKETS
Declaration of commerciality of
two fields already presented to
ANP (Gavião Real and Gavião Azul)
Low capital and operating costs:
5.7 M m³/d (2.7 M m³/d net
to OGX S.A.)
A site to construct a power plant
in the PN-T-68 block has already
been acquired by MPX
MPX has obtained an installation
license for 1,863 MW and has
initiated the environmental
licensing process for the
development of an additional
1,859 MW
32
OGX Production Targets
OGX Production Targets (1) OGX Equipment Demand
FPSO
19 units12 units for Campos Basin discoveries
TLW
PW
HP
5 unitsexpected to be used in Espírito Santo Basin (the only deep water blocks in OGX’s portfolio)
24 units 11 units for Campos Basin discoveries
Portfolio potential of 10.8 bn of recoverable boe: more than 10 years of production growth
Campos and Parnaíba discoveries can support 730 thousand boepd of production level
The 10.8 bn boe portfolio potential allows for a longer plateau level estimated at approximately 1.4 million boepd, from 2019 onwards
In kboepd
Expected demand of 48 units
Total of 23 units estimated for OGX’s Campos Basin projects (12 FPSOs and 11 WHPs)
Strategy to expedite development of projects with critical drilling and production equipment two to three years in advance
(1) Maximum production expected to occur within the years of 2011, 2015 and 2019.
Financial Overview
Cash Position
Solid cash position of R$ 4.1 billion, or US$ 2.5 billion, to
support the exploratory commitments and the beginning of
production
Foreign exchange hedge position of approximately US$ 1.3
billion, representing approximately 10 months of financial
commitments denominated in US$
Average cumulative gross return equivalent to approximately
103.8% of the Interbank Deposit Rate (CDI), or 11.42% p.a.,
generating R$ 121.8million of interest income for the period
Cash invested in fixed-income instruments with some of the
leading financial institutions in Brazil
Allocation by InstitutionR$ billion US$ billion
Cash position evolution Cash allocation
34
Itau Unibanco
23%
Bradesco26%
Votorantim3%
Santander14%
Safra7%
BTG Pactual7% CS
7%
Others 8%
ABC3%
Société2%
1,0
1,5
2,0
2,5
3,0
0,0
1,0
2,0
3,0
4,0
5,0
4Q10 JAN FEB MAR
Cash in R$ Cash in US$
Appendix
Concluded Wells (1 of 3)
36
Well Block Prospect Rig Coast Distance Water Depth Net Pay
A 1- MRK - 2B BM-S-29 Abacate Sovereign Explorer 130 km 100 m Oil&Gas shows
B OGX-1 BM-C-43 Vesuvio Ocean Ambassador 85 km 140 m Eocene: 57m
J OGX-9D BM-C-41 Vesúvio Direcional Ocean Ambassador 87 km 142 m Eocene: 60m
N OGX-13 BM-C-41 Vesúvio Vertical Ocean Lexington 87 Km 138m Eocene: 10m
C OGX-2A BM-C-41 Pipeline Ocean Ambassador 77 km 130 m
Eocene: ShowsCretac.: ShowsAlbian: 100mAptian: 50mBarremian: 15m
G OGX-6 BM-C-41 Etna Ocean Quest 82 km 137 mAlbian: 74mAptian: 17m
D OGX-3 BM-C-41 Waimea Sea Explorer 83 km 130 mAlbian: 80mApt/Barrem: 50m
I OGX-8 BM-C-41 Fuji Ocean Star 82 km 125 mAlbian: 43mAptian: 44m
E OGX-4 BM-C-42 Kilawea Ocean Quest 79 km 150 m Eocene: 17m
F OGX-5 BM-C-43 Krakatoa Ocean Ambassador 79 km 145 mMaastric.: ShowsAlbian: 30mAptian: 20m
H OGX-7A BM-C-42 Huna Ocean Lexington 86 km 152 mAlbian: >17mAptian: 35m
K OGX-10 BM-C-42 Hawaii Sea Explorer 79 km 158 mCenomanian: 11mAlbian: >13m Aptian: 40m
L OGX-11D BM-S-59 Natal Ocean Quest 84 km 180m Santonian: 75m
M OGX-12 BM-S-57 Niterói Ocean Star 95 Km 150m -
O OGX-14 BM-C-40 Peró Ocean Lexington 96 Km 104m Albian: 35m & 27m
P OGX-15 BM-C-41 Santa Helena Ocean Ambassador 78km 130mAlbian: 32mAptian: 31m
Concluded Wells (2 of 3)
37
Well Block Prospect Rig Coast Distance Water Depth Net Pay
Q OGX-16 PN-T-68(1) California QG-1 Onshore blockDevonian: Gas shows, 23m & 25m (column)
R OGX-17 BM-S-56 Belém Ocean Star 85 Km 136m Albian: 43m
S OGX-18 BM-C-40 Ingá Ocean Lexington 95 Km 105mSantonian: Oil showsAlbian: 12m (Oil column)
T OGX-19 BM-S-58 Aracaju Ocean Quest 112 Km 172m Santonian: 40m
U OGX-20 BM-C-41 Tupungato Ocean Ambassador 84 Km 132mMaastrichtian: 9m & 3mAlbian: 50mAptian: 42m
V OGX-21D BM-C-41 Waimea Direcional Sea Explorer 84 Km 134m Albian: 14m
W OGX-22 PN-T-68(1) Fazenda São José QG-1 Onshore blockUpper Devonian: 49m Lower Devonian: 47m
X OGX-23 BM-S-58 Ilhéus Ocean Quest 107 Km 152m -
Y OGX-24 BM-S-56 Itagi Ocean Star 94 Km 140m -
Z MRK-3/ 4P BM-C-37(2) Carambola-A Blackford Dolphin 74 Km 134mSantonian: 14mAlbian: 43mAptian: 12m
AA OGX-25/ 27P BM-C-39 Waikiki Pride Venezuela 94 Km 105mEocene: 8m (gas)Albian-cenomanian: 145m
V OGX-26HP BM-C-41 Waimea Horizontal Sea Explorer 84 Km 134mAlbian: 1000m (horizontal column)
AB OGX-28D BM-C-41 Illimani Ocean Star 80 Km 126m Albian: 24m
AC OGX-29/ 32 BM-C-39 Itaipu Ocean Lexington 86 Km 104m Oil shows
AE OGX-31 BM-C-41 Osorno Ocean Ambassador 79 Km 136mAlbian: 48mAptian: 23m
(1) OGX Maranhão has 70% W.I; (2) OGX has 50% W.I. and Maersk is the operator
Concluded Wells (3 of 3)
38
Well Block Prospect Rig Coast Distance Water Depth Net Pay
AJ OGX-36D BM-C-41 Pipeline D Ocean Star 77 Km 128m Albian: 60m
AH OGX-35 BM-C-39 Waikiki Direcional Ocean Lexington 89 Km 104m Albian-Cenomanian: 80m
AG MRK-5 BM-C-37(1) Carambola B Blackford Dolphin 80 Km 130m Albian: 17m
AF OGX-33 BM-C-41 Chimborazo Pride Venezuela 84 Km 127m Albian: 42m
AK OGX-37 BM-C-43 Potosi Ocean Ambassador 87 Km 140m Oil Shows
AO OGX-41DBM-C-39 / BM-C-40
Waikiki -2 D Ocean Lexington 90 Km 110m Albian: 92m
AN OGX-40D BM-C-41 Pipeline -2 D Sea Explorer 79 Km 130m Albian: 107m
AD OGX-30 BM-S-58 Salvador Ocean Quest 105 Km 151m Albian: 50m
AI OGX-34 PN-T-68(2) Bom Jesus QG-1 Onshore block Devonian: 23m
AQ OGX-43D BM-C-41 Illimani -1 D Ocean Ambassador 80 km 140 m Albian: 50m
(1) OGX has 50% W.I. and Maersk is the operator
(2) OGX Maranhão has 70% W.I.
Ongoing Drilling Activities
39(1) OGX Maranhão has 70% W.I
Well Block Prospect Rig Coast DistanceWater Depth
Status Net Pay
AL OGX-38 PN-T-68(1) Fazenda São José BCH-05 Onshore block In progress since 03/25 Devonian: 43m
AM OGX-39HP BM-C-41 Pipeline Horizontal Ocean Star 77 Km 128m In progress since 03/25 -
AP OGX-42D BM-C-41 Pipeline -3 D Pride Venezuela 78 Km 120m In progress since 04/12 -
AR OGX-44HP BM-C-41 Waikiki Ocean Lexington 90Km 110m In progress since 04/29 -
AS OGX-45D BM-C-41 Waikiki – 3 D Sea Explorer 96Km 109m In progress since 05/04 -
AT OGX-46D PN-T-68 ¹ Califórnia - D QG-1 Onshore Block In progress since 05/19 -
AU OGX-47 BM-S- 59 Maceió Ocean Quest 110 Km 185m In progress since 05/24 -
AV OGX-48 BM-C-41 Pipeline - 4 Ocean Ambassador 75 Km 128m In progress since 05/28 -
Parnaíba BasinCampos Basin
OGX Blocks Oil & Gas Fields
Santos Basin
