MANAGEMENT PRESENTATION
Rio de Janeiro | March 2013 |
AGENDA 1
2
3
4
OGX Overview
OGX Portfolio and Execution
OGX Operations
Financial Overview
Appendix
Last update: 03/11/2013
OGX OVERVIEW
1
Highly successful and experienced management team, combining unique intellectual capital and
superior execution skills
Overall exploratory success rate exceeding 85% with high productivity reservoirs amongst the best in
Brazil
World class E&P portfolio, mostly in shallow waters and onshore (low cost and off-the-shelf technology)
OGX is among the largest pure E&P companies globally
Proven execution capability (from concept to oil in an unprecedented timing) with fully established
operations comprising more than 6,000 people
Solid cash position allows OGX to conduct the largest and most successful private sector exploratory
campaign in Brazil and to support production development (more than 100 wells spud since the beginning
of its exploratory campaign in Sep. 2009)
Brazil’s historical under-exploration underpins massive growth opportunities for OGX
OGX OVERVIEW
4
OGX MAIN ACCOMPLISHMENTS
5
Proven Execution Capability (From Concept To First Oil in Unprecedented Timing) With Fully Established Operations Comprising More Than 6,000 People
OGX Creation
US$1.3 bn raised through an equity Private Placement 21 blocks acquired during the 9th Bidding Round
Jul/07 Nov/07
Jun/08
IPO: US$4.1 bn raised
Aug/09
Jun/10
Bond: US$ 2.6bn raised Beginning of the
drilling campaign
Acquisition of 70% stake in the Parnaíba Assets
Apr/11
Survey and interpretation of the 3D seismic data
Procurement of all equipment and services necessary to initiate the drilling campaign
May/11
5 onshore blocks acquired in Colombia
Sep/11
Mar/12
Sep/09
Updated OGX portfolio to 10.8 bn(1) boe of potential resources
(1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports
1 block acquired in Parnaíba (50% stake)
Oct/11
Jan/12
Arrival of FPSO OSX-1
Total investments of ~ US$ 4.8bn of
Drilling Capex and Signature Bonus +
~ US$ 500 M of Seismic Campaign
Total cash raised to date: US$9.4 bn
1st Oil
New Bond: US$ 1.1bn raised
OGX OWNERSHIP AND CORPORATE STRUCTURE
Free Float
25 Blocks
5 - Campos (100%) (2)
2 - Campos (70%) (2)
4 - Santos (100%) (2)
4 - Espírito Santo (50%)
5 - PAMA (100%) (2)
5 - Colombia (100%) (2)
8 Blocks
7 - Parnaíba (70%) (2)
1 – Parnaíba (50%) (2)
(1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”) (2) OGX as operator (3) Market data as of March 08, 2013 (4) MPX S.A. holds 33.33%
Petróleo e Gás Participações S.A. (Market Capitalization (3): ~ US$ 5 Billion)
Petróleo e Gás S.A.
Maranhão Petróleo e Gás S.A.
Average daily traded volume (1 month): ~ US$100 million
~ 40 thousand investors
3rd most representative stock in Ibovespa index 5.4%
One of the most liquid common shares
61%¹ 39%
99.99% 66.67%4
International
OGX Austria
100.00%
100%
6
MANAGEMENT ORGANIZATION STRUCTURE(1)
Luiz Carneiro (33)
CEO
Paulo de Tarso Guimarães (35) Exploration Officer
José Roberto Faveret General Counsel
Roberto Monteiro CFO
Reinaldo Belotti (34) Production Officer
Armando Ferreira (31) Reservoir & Reserves
Olavo Foerch (32) Procurement
Ricardo Juiniti (27) Drilling and Completion
Billy Pinheiro (30) Logistics
Vilmar Barbosa (27) Production
Leandro Leme (31) HSE
Dolores Carvalho (35) E&P Laboratory
Davilson Andrade (20) Exploration Campos & ES
Celso Martins (34) Onshore Basin
Ernani Porsche (33) International
Moacir Santos (38) Geological Operations
Highly Successful And Committed Management Team,
Combining Unique Intellectual Capital and Superior Execution Skills 7 (1) Parentheses represent years of experience in the E&P industry
Marcos Amaral (28) Applied Technology
José Sartori (39) Exploratory Management
Joaquim Dib Cohen (32) Oil & Gas Commercialization
Paulo Otávio Gomes (25) Exploration Santos & PAMA
HIGHLY QUALIFIED EXPLORATION TEAM
Exploratory Team
Part of our team 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 9 billion boe and more
than 50 new fields discovered
PBR Success Index
Proven Track Record Having Opened Several New Oil Frontiers, Including The Pre-salt, and Discovering Over 50 New Oil Fields
8
BRAZIL
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
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
Unlicensed 96%
Licensed 4%
COUNTRY HISTORICAL O&G PROD.(BN BOE)
USA (1900-2010) 440
EX-USSR (1900-2010)
335
SAUDI ARABIA (1938-2010)
145
BRAZIL (1941-2010)
14.5
Brazil’s Historical Under-Exploration Underpins Massive Growth Opportunities for OGX
9
Unlicensed 96%
Oil and Gas Discovered Volumes
2000 – 2010 (Bn boe)
Vast Untapped Oil & Gas Potential
OGX PORTFOLIO AND EXECUTION
2
PO
RTFO
LIO
Deep water ~1,000m
Shallow water ~150m
Shallow water ~120m
Shallow water ~60m
OGX PORTFOLIO
33 blocks: 28 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 2 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
11
Oil discoveries of 4.1 bn bbl are already under production development in the shallow waters of Campos Basin
OGX PORTFOLIO POTENTIAL
73% Shallow Water
8% Deep
Water
19% Onshore
79% Oil
21% Gas
Portfolio Breakdown
12
Breakdown
D&M Certified Volumes (Bnboe)
Note:
1 Does not include Parnaíba 3C contingent resources of 141 million boe
10.8
C1(4%)0.1
C2(19%)
0.6C3 (77%)2.33.0
1.3
4.8
6.7¹6.5
Mar-08 Sep-09 Dec-10
Contingent Delineation Prospective
CAMPOS BASIN
OGX’s Discovered Accumulations Confirm a New Hydrocarbon Province
in the Southern Campos Basin
~400 MM bbl already declared commercial (Tubarão Azul and Tubarão Martelo Fields)
7 blocks operated by OGX
Total area of 1,177 km2
Average water depth of ~120m
72 wells drilled
~90% of success rate
Campos Basin
13
Low Risk, Shallow Water And Large Volumes
Areas Update– Not including pre-salt and exploratory prospects
CAMPOS BASIN
14
Highlights
Successful appraisal campaign with 39 wells
drilled and a 87% hit ratio
Acquisition of incremental 20% participation
of blocks BM-C-37 and BM-C-38 from Maersk,
with OGX becoming the operator
Declaration of Commerciality of the Waikiki
accumulation and Development Plan (DP)
submitted to the ANP
Named as Tubarão Martelo Field with
expected total recoverable volume of
285 MMbbl
Declaration of Commerciality for a portion of
the Waimea Complex and Development Plan
(DP) submitted to the ANP
Named as Tubarão Azul Field with
expected total recoverable volume of
110 MMbbl
New discoveries in the 1H12: Itacoatiara and
Honolulu Source:
Area estimates based exclusively on OGX’s studies
Waikiki Complex Waimea / Pipeline and Vesuvio Complexes
TUBARÃO AZUL FIELD (1ST MODULE)
OGX-3 Albian: 80m Aptian/Barrem: 50m N.A.
OGX-21D/OGX-26HP
Albian: 14m N.A.
OGX-50D/OGX-55HP Santonian: 1,7m Albian: 52m
1C
OGX-53D/OGX-60HP Albian: 71m 1C
OGX-65D/OGX-68HP Albian: 97m 1C
15
Waimea Complex – Not including pre-salt and exploratory prospects
TAMBORA
OGX-52 Santonian: 5m Albian: 96m
N.A.
OGX-58DP - N.A.
OGX-75 Albian: 49m N.A.
OGX-81 Albian: 62m N.A.
ILLIMANI
OGX-28D Albian: 24m N.A.
OGX-43D Albian: 50m Del.
OGX-61 Albian: 9m 3C
TUPUNGATO
OGX-20 Maastrich: 9m & 3m Albian: 50m Aptian: 42m
N.A.
OSORNO
OGX-31 Albian: 48m Aptian: 23m
N.A.
OGX-73 Albian: 37m N.A.
FUJI
OGX-8 Albian: 43m Aptian: 44m
N.A.
OGX-56D Albian: 60m 3C
OGX-69 Albian: 38m 3C
CHIMBORAZO
OGX-33 Albian: 42m N.A.
Waimea Complex¹
WELL UNDER EVALUATION
OGX-54 Albian: 24m Del.
Note:
1 Figures in “meters” illustrate net pays of oil columns
2 Discovered after D&M ‘s Dec 2010 contingent resources report
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX’s studies
TUBARÃO MARTELO FIELD
OGX-25 Eocene: 8m (gas) Albocenomaniano: 145m
N.A.
OGX-35D Albocenomanian: 80m 3C
OGX-41D/ OGX-44HP
Albian: 92m 2C
16
INGÁ
OGX-18 Santonian: Oil Shows Albian: 12m (oil column) N.A.
OGX-62 Albocenomanian: 20m Santonian: 26m
2C
OGX-64DP Santonian: 23m 3C
OGX-67 - 3C
OGX-71 - 3C
ITACOATIARA
OGX-79 Albian: 64m N.A.
PERÓ
OGX-14 Albian: 35m & 27m N.A.
OGX-76² Albian: 6m 2C
Waikiki Complex¹ WELLS UNDER EVALUATION
OGX-45D Maastrich: 5m Del.
OGX-29/32 Oil Shows N.A.
Waikiki Complex – Not including pre-salt and exploratory prospects
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX’s studies
Notes:
1 Figures in “meters” illustrate net pays of oil columns
PIPELINE
OGX-2A Eocene: Oil shows Cretac: Oil shows Albian: 100m Aptian: 50m Barremian: 15m
N.A.
OGX-36D/ OGX-39HP
Albian: 60m 3C
OGX-40D Albian: 107m 2C
OGX-42D Eocene: 6m Albian: 82m
3C
OGX-48 Albian: 12m 3C
OGX-70 - 3C
OGX-72 Albian: 129m 3C
OGX-80³ Albian: 51m N.A.
17
SANTA HELENA (PIPELINE)
OGX-15 Albian: 32m Aptian: 31m
N.A.
ETNA (PIPELINE)
OGX-6 Albian: 74m Aptian: 17m
N.A.
Pipeline Complex¹
CARAMBOLA
MRK-5 Albian: 17m N.A.
RJS-105² Albian: 150m N.A.
CARAMBOLA A (PIPELINE)
MRK-3 Santonian: 14m Albian: 43m Aptian: 12m
N.A.
Pipeline Complex – Not including pre-salt and exploratory prospects
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX’s studies
Notes:
1 Figures in “meters” illustrate net pays of oil columns
2 RJS-105 well drilled by Petrobras
3 Discovered after D&M ‘s Dec 2010 contingent resources report
VESUVIO
OGX-1 Eocene: 57m N.A.
OGX-9D Eocene: 60m 1C
OGX-13 Eocene: 10m 1C
18
KRAKATOA
OGX-5 Maastrich: Oil shows Albian: 30m Aptian: 20m
N.A.
KILAWEA
OGX-4 Eocene: 17m N.A.
Vesuvio Complex¹
POTOSI (VESUVIO)
OGX-37 Oil Shows N.A.
Note:
1 Figures in “meters” illustrate net pays of oil columns
Vesúvio Complex – Not including pre-salt and exploratory prospects
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX’s studies
CAMPOS BASIN Production in the Tubarão Azul Field
19 OGX First Oil Flowing Since January/12 Through EWT
Electrical submersible pump
Buoy OSX-1
Risers and Umbilicals
Flexible lines
Wet christmas tree OGX-26HP
Wet christmas tree OGX-68HP
Wet christmas tree TBAZ-1HP
Main characteristics:
Three producer wells on-stream:
OGX-26HP, OGX-68HP and TBAZ-1HP
4th producer well to be connected by 2013
2 injection wells planned
Oil quality of 20° API
Water depth of 140 meters
Wet christmas tree
Illustrative
CAMPOS BASIN
Dec 23,
2011
Concluded the connection of
the flexible lines to the
detachable turret
Sep 16,
2011
Granting of the
preliminary and
installation license
by IBAMA
Sep 17,
2011
Beginning of the subsea
installation (piles,
moorings and MWA)
Dec 19,
2011 Flexible lines launched
and connected to the
wet christmas tree
Dec 25,
2011
FPSO OSX-1 sets sail
from the port of Rio de
Janeiro
Jan 31,
2012
FPSO OSX-1 begins
production
Jan 12,
2012
Connection of the FPSO
OSX-1 to the turret
Dec 18,
2009
Discovery of
Waimea OGX-3 Oct 4,
2011
Arrival of the
FPSO OSX-1 in
Rio de Janeiro 1st Oil
20
From Discovery to 1st Oil in Waimea
OPERATIONS UPDATE: Production
21
Production in Tubarão Azul and Gavião Real fields
Notes:
1 Average net production (OGX participation only) in the Gavião Real Field. Conversion factor considered: 6.29 kboe = 1 million cubic meters of natural gas
2 January 2013 refers to a production period of 12 days, since the beginning of the synchronization of the first turbine in the TPP Parnaíba I
OGX Average Monthly Production (kboepd)
Effective
Production DaysFeb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13
OGX-26HP 29 31 30 29 20 - 27 30 31 30 31 29 28
OGX-68HP - - - 17 30 31 31 30 31 30 31 29 28
TBAZ-1HP - - - - - - - - - - - 26 28
Total 29 31 30 46 50 31 58 60 62 60 62 84 84
Average per
offshore well
(kboepd)
11.6 10.3 9.1 6.1 5.5 7.0 5.7 5.2 5.2 5.1 5.1 4.9 3.8
11.610.3
9.1 9.0 9.27.0
10.6 10.4 10.3 10.1 10.1
13.211.3
3.25.5
11.6
10.3
9.1 9.0 9.2
7.0
10.6 10.4 10.3 10.1 10.1
16.4 16.8
Onshore¹ ²
Offshore
CAMPOS BASIN
22 22
OSX-2 and OSX-3 Production Schematic
Main characteristics:
OSX-2: 1st oil expected for 2H13
OSX-3: 1st oil expected for 2H13
4 subsea wells connected to each FPSO
Oil quality: 20-28° API
Water depth: ~120 meters
OSX-2/OSX-3
Flexible lines
WHP-1/WHP-2
Dry christmas tree
Wet christmas tree
Illustrative
CAMPOS BASIN
23
1st oil expected for 2H13
EPC: MODEC
Shipyard: Jurong Shipyard (JSL) – Singapore
Technical specifications:
Production capacity: 100 kbbl/day
Storage capacity: 1.3 Mboe
OSX-2 and OSX-3 Engineering Status
OSX-2 Overview OSX-3 Overview
1st oil expected for 2H13
EPC: Single Buoy Moorings Inc (SBM)
Shipyard: Keppel Fels - Singapore
Technical specifications:
Production capacity: 100 kbbl/day
Storage capacity: 1.3 Mboe
Both FPSOs Underway and On Schedule, Constructed in Top Tier Shipyards
FPSOs WHPs
OSX-1:
Production capacity of 60 kbpd and storage of 950 kbbl
Average Day rate of US$ 263 k
Arrived in Oct/11
First oil in Jan/12
OSX-2:
Production capacity of 100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 360 k
Contracted by OSX with SBM
Expected delivery: 2H13
OSX-3:
Production capacity of 100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 360 k
Contracted by OSX with MODEC
Expected delivery: 2H13
WHP-1:
Capacity to drill up to 30 wells
Equipment on-stream by the 1H14
Detailed engineering ongoing (EPC awarded to Techint by OSX)
WHP-2:
Capacity to drill up to 30 wells
Equipment on-stream by 1H14
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 VLCC´s (Very Large Crude Oil Carriers) purchased on November, 2010 by OSX to be converted into FPSOs
SECURED PRODUCTION EQUIPMENT
24 24
WHP-3 and WHP-4:
Order placed for charter and construction with OSX
Both WHPs will be built in the Açu Superport
Santos Basin is One of The Most Promising Exploratory Areas in Brazil, With Significant Potential For Gas and Light Oil
4 blocks operated by OGX
(100% owned)
Total area of 623 km²
Average water depth of
~150 m
14 wells drilled
Pre-salt potential in shallow
waters (OGX-63)
~75% success rate
Santos Basin
SANTOS BASIN
25
High Potential
SANTOS BASIN
Encouraging Results From 3 Drill-stem Tests Confirm Emergence of a New Oil, Gas and Condensate Center in The Region
Exploratory Campaign
2010 Activities
MRK-2B
OGX-11D
OGX-12
OGX-17
OGX-19
2011 Activities
OGX-23
OGX-24
OGX-30
OGX-47
OGX-63
Maceió (OGX – 47)
Gas and condensate (~20% with approx.
50° API)
AOF production potential results:
Vertical well: 1.0M m³/day of gas
Horizontal well: 2.5M m³/day of
gas
Natal (OGX-11D)
Gas and condensate (~25% with approx. 47° API)
AOF production potential results:
Vertical well: 1.0 M m³/day of gas and 1.2K bbl/day of condensate
Horizontal well: 5.0M m³/day of gas and 6K bbl/day of condensate
Drill-stem Tests Performed
26
2012 Activities
OGX-74
OGX-85
OGX-89D
OGX-94DA Illustrative
Positive Drill-Stem Test Results
Natal (OGX-74)
Light oil (38º API) confirmation
Sandstone reservoirs (Santonian age)
4 km distant from OGX-11D
Drill-stem Test for Fluid Identification
SANTOS BASIN
27
Highlights Albian Gas Interval
Aptian Interval
Good porosity
Dolomitized layers with open fractures
MDT Dual-Packer Test collected 47º
API hydrocarbons
Pore
Dolomitized microbial
Connected vugular porosity
Light oil/condensate shows
Oil
Pre-salt Discovery In Shallow Waters
Albian reservoir
Approximately 1,000 meters of column and 110 meters of net pay
Good permoporosity and fractures
Shallow waters Pre-salt (Aptian reservoir)
Drilled up to 6,135 meters and thus far identified column of 150 meters
1st microbiolite Pre-salt discovery in shallow waters in Brazil
Same reservoir rock in pre-salt as only seen so far in deep and ultra-deep waters in the Santos and Campos Basins
Strong kick in the last drilled layer of the reservoir with shows of hydrocarbons
Already drilling first appraisal well in the Fortaleza accumulation (OGX-85)
New Frontier Basin With High Potential For Gas Production
1.1 Tcf (~200MM boe) already declared commercial (Gavião Real and Gavião Azul Fields)
Total area of 24,500 km²
Commence of gas monetization through thermoelectric plants under development by MPX/Petra (3,722 MW already licensed)
~65% success rate (26 wells drilled)
Parnaíba Basin
PARNAÍBA BASIN
28
Major Gas Province
Gavião Real
Gavião Azul
Legend:
Seismic Lines
PARNAÍBA BASIN
29
More than 20 prospects identified
Beginning of GTU commercial production in
January/13
Available production capacity of up to ~6 M m³
per day in 2013
MPX has obtained installation license of 3,722
MW
Declaration of Commerciality of Bom Jesus
accumulation (Gavião Branco Field)
3 seismic crews working on the site
3 rigs operating simultaneously: 2 focused on
exploration and 1 completion rig on the
production development
Parnaíba Complex
Developing the Business Plan
PARNAÍBA BASIN
30
MPX + Petra OGX Maranhão (70%) + Petra (30%)
Parnaíba Development Schematic Gas Thermal Power Plant Development
Notes: 1 Facilities cost includes: gathering system (lines and manifolds), a production facility for dry gas and a very short pipeline 2 Includes operating and maintenance of production facilities, lines, gas pipelines and wells
Capex
Total drilling cost:
US$ 340 M
Total facilities1
cost: US$ 110M
Opex field life
Less than US$
0.30/1,000 cubic
feet
30
Short Gas Pipeline (<2 km)
CAMPO DE GAVIÃO REAL
Poços
de p
rodução
Gasoduto2 x 18" - 4,1 km
Manifold de
produção
Gasoduto2 x 12" - 11,7 km
CAMPO DE GAVIÃO AZUL
Poços
de p
rodução
Manifold de
produção
SITE DA MPX
Planta de
Tratamento
UTE
Transferência de
custódia
Filtragem, controle e
medição
Recebimento, separação
e tratamento
Site UTG OGX Site UTE MPXManifold
Pro
du
cti
on
w
ell
s
GTU TPP
Project Development
PARNAÍBA BASIN
31
Execution Highlights
Project Development
Commenced commercial natural gas
production in Jan/13
Two turbines synchronized since Feb/13
All environmental permits granted
Concluded drilling and completion of all
16 production wells planned for this
phase of the project
EPC contracted for the construction of the gas processing facility
Awarded to Valerus-Geogas
Future available production capacity of
up to 7.5 million cubic meters per day
Estimated operational beginning of the two remaining turbines of the first project phase by Mar/13
GTU Site View
The New Frontier of Espírito Santo Has Proven to be a Very Active Petrolific System With Recent Important Discoveries in Neighboring Blocks
4 blocks operated by
Perenco (OGX has 50%
W.I.)
Total area of ~2,900 km²
Average water depth of
~1,000 m
Espírito Santo Basin
ESPÍRITO SANTO BASIN
32
New Frontier In Deep Water
Legend
OGX Blocks
Production Fields
0-50 Meters 50-100 Meters
200-1.000 Meters
2.000-3.000 Meters
Atlantic Ocean
Espírito
Santo
1.000-2.000 Meters
New Frontier With Geological Model Similar to West Africa, Where Significant Discoveries Were Made Recently
5 blocks operated by OGX
(100% owned)
Total area of 960 km²
Average water depth of
~60m
Pará-Maranhão Basin
PARÁ MARANHÃO BASIN
33
Promising New Frontier
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
5 blocks operated by OGX
(100% owned), 3 of which
are located close to
Maracaibo Basin (~80 bn
boe discovered and ~50 bn
boe already produced)
Colombian Basins
COLOMBIA
34
Cesar-Ranchería and Lower Magdalena Valley Great Upside Potential
OGX OPERATIONS
3
OPERATIONAL CAPABILITIES AND STRUCTURE
OFFSHORE DRILLING 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: 3
CONTRACTOR: EDISON CHOUEST/
NORSKAN/MAERSK
FAST SUPPLY VESSEL (FSV)
QUANTITY: 1
CONTRACTOR: EDISON
CHOUEST
MID SIZE HELICOPTER
QUANTITY: 3
CONTRACTOR: AERÓLEO
OGX Team: ~380 employees
Over 6,000 people dedicated
3D Room / IOSC
EFFICIENCY,
AGILITY AND
OPERATIONAL
SECURITY
36
4 FINANCIAL OVERVIEW
STRONG CASH POSITION
Solid cash position of R$ 5.1 billion, or US$ 2.5
billion (as of September 30), to support exploration
commitments, development and production ramp-
up:
OGX has the option to require controlling
shareholder, Eike Batista, to purchase up to
US$1.0 billion of new common shares of OGX
at a price of R$6.30 per share
Cash allocation in R$: R$ 1.8 billion (~36%)
Average cumulative gross return equivalent to 102.9%
of the Interbank Deposit Rate (CDI), or 9.17% p.a.
Cash Allocation in US$: US$ 1.6 billion (~64%)
Average cumulative gross return equivalent to 1.46%
p.a.
Cash position in fixed income instruments allocated to most
solid financial institutions
R$ billion
Cash Position Evolution Cash Allocation
38
Morgan Stanley
28%
Votorantim18%
Itaú Unibanco16%
Santander10%
BTG Pactual5%
Bradesco2%
Others21%
0.0
2.0
4.0
6.0
8.0
2Q12 JUL AUG 3Q12
Cash in R$
FPSO OSX-1 FINANCIAL RESULTS
39
Pro Forma EBITDA Reconciliation Cargos Delivered
Total Net Revenue of R$ 493.8 million and Total EBITDA
of R$ 174.7 million, reflecting the asset’s high value
Economies of scale will dilute costs per barrel
More wells on stream
Majority of costs are fixed: logistics, leasing and
operations
Daily Cost (USD '000) 1st cargo 2nd cargo 3rd cargo 4th cargo Average
Leasing (268) (262) (268) (259) (264)
OSX Services (155) (143) (143) (139) (144)
Logistics (134) (147) (141) (113) (131)
Others (10) 1 (6) (9) (7)
Total (567) (551) (557) (520) (546)
Delivered cargos 1st ¹ 2nd ¹ 3rd ² 4th ³ Total
Delivery Date 03/28/2012 4/21/2012 07/26/2012 10/15/2012
Operation Period 51 days 27 days 98 days 80 days
Production related to the shipments
- in barrels (bbls)547,376 246,809 789,774 809,495 2,393,454
R$ ('000)
Net Revenue 118,003 55,996 150,686 169,145 493,830
Sales Taxes - - - - -
Royalties (10,687) (4,938) (14,842) (15,772) (46,239)
Leasing (24,078) (13,222) (52,708) (41,998) (132,006)
OSX Services (13,944) (7,236) (28,071) (22,499) (71,750)
Logistics (12,005) (7,410) (27,795) (18,405) (65,615)
Others (871) 36 (1,183) (1,529) (3,547)
EBITDA 56,418 23,226 26,087 68,942 174,673
% EBITDA / Net Revenue 47.81% 41.48% 17.31% 40.76% 35.37%
EBITDA / barrel - (R$/barrel) 103.07 94.11 33.03 85.17 72.98
Note:
1 Sales occurred during the Extended Well Test and before the declaration of commerciality – not accounted in Results and recorded as a reduction of “Fixed Assets”
2 Sale occurred after the Extended Well Test and declaration of commerciality – recorded as net revenues
3 Sale occurred after the Extended Well Test and declaration of commerciality – recorded as net revenues. Net figure of expenses associated with the sale of freight costs
APPENDIX
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30%
ONGOING ACTIVITIES
Well Block Accumulation Rig Coast Distance Water Depth Status Net Pay
DC OGX-94DA BM-S-58 Curitiba Ocean Quest 101 km 143m In progress since 08/29 Campanian: 23.5m Santonian: 9m
DG TBMT-10H BM-C-39 Tubarão Martelo Field Ocean Star 89 km 106m In progress since 01/04
DG TBMT-8H BM-C-39 Tubarão Martelo Field ENSCO-5002 90 km 107m In progress since 01/17
DP OGX-106 BM-C-37² Cancun ENSCO-5004 62 km 130m In progress since 01/22
DQ OGX-107 PN-T-49¹ Fazenda Chicote BCH-12 Onshore Block In progress since 01/25 Devonian: 66m
DR OGX-108 PN-T-49¹ Fazenda Santa Isabel BCH-5 Onshore Block In progress since 01/27
OGX Blocks Oil & Gas Fields
PARNAÍBA BASIN CAMPOS BASIN SANTOS BASIN ESPÍRITO SANTO BASIN
41
Development Wells
CONCLUDED WELLS (1 OF 7)
Well Block Accumulation 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 Vesúvio 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: Shows Cretac.: Shows Albian: 100m Aptian: 50m Barremian: 15m
G OGX-6 BM-C-41 Etna Ocean Quest 82 km 137 m Albian: 74m Aptian: 17m
D OGX-3 BM-C-41 Waimea Sea Explorer 83 km 130 m Albian: 80m Apt./Barrem: 50m
I OGX-8 BM-C-41 Fuji Ocean Star 82 km 125 m Albian: 43m Aptian: 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 m Maastric.: Shows Albian: 30m Aptian: 20m
H OGX-7A BM-C-42 Huna Ocean Lexington 86 km 152 m Albian: >17m Aptian: 35m
K OGX-10 BM-C-42 Hawaii Sea Explorer 79 km 158 m Cenomanian: 11m Albian: >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 78 km 130m Albian: 32m Aptian: 31m
42
CONCLUDED WELLS (2 OF 7)
43 43
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
Q OGX-16 PN-T-681 California QG-1 Onshore Block Devonian: Gas shows, 23m & 25m (column)
R OGX-17 BM-S-56 Belém Ocean Star 85 Km 136m Albian: 43m
S OGX-18A BM-C-40 Ingá Ocean Lexington 95 Km 105m Santonian: Oil shows Albian: 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 132m Maastrichtian: 9m & 3m Albian: 50m Aptian: 42m
V OGX-21D BM-C-41 Waimea Direcional Sea Explorer 84 Km 134m Albian: 14m
W OGX-22 PN-T-681 Fazenda São José QG-1 Onshore Block Upper 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-372 Carambola – A Blackford Dolphin 74 Km 134m Santonian: 14m Albian: 43m Aptian: 12m
AA OGX-25/27P BM-C-39 Waikiki Pride Venezuela 94 Km 105m Eocene: 8m (gas) Albian-cenomanian: 145m
V OGX-26HP BM-C-41 Waimea Horizontal Sea Explorer 84 Km 134m Albian: >1,000m (horizontal section)
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 136m Albian: 48m Aptian: 23m
AJ OGX-36D BM-C-41 Pipeline D Ocean Star 77 Km 128m Albian: 60m
AH OGX-35D BM-C-39 Waikiki Direcional Ocean Lexington 89 Km 104m Albian-Cenomanian: 80m
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30%
CONCLUDED WELLS (3 OF 7)
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30% 44
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
AG MRK-5 BM-C-37 2 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-41D BM-C-39 / BM-C-40
Waikiki - 2D Ocean Lexington 90 Km 110m Albian: 92m
AN OGX-40D BM-C-41 Pipeline - 2D 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 1 Bom Jesus QG-1 Onshore Block Devonian: 23m
AQ OGX-43D BM-C-41 Illimani - 1D Ocean Ambassador 80 km 140 m Albian: 50m
AO OGX-44HP BM-C-39/ BM-C- 40
Waikiki Ocean Lexington 90 Km 110m Albian-Cenomanian: 1,063m (horizontal section)
AL OGX-38 PN-T-68 1 Fazenda São José BCH-05 Onshore Block Devonian: 43m
AS OGX-46D PN-T-68 1 Califórnia – D QG-1 Onshore Block Devonian: 15m
AU OGX-48 BM-C-41 Pipeline – 4 Ocean Ambassador 75 Km 128m Albian: 12m
AP OGX-42D BM-C-41 Pipeline - 3D Pride Venezuela 78 km 120m Eocene: 6m Albian: 82m
AW OGX-50D BM-C-41 Waimea – 3D Sea Explorer 84 Km 131m Santonian: 1.7m Albian: 52m
AR OGX-45D BM-C-40 Waikiki – 3D Ocean Lexington 96 Km 109m Maastrichtian: 5m
AM OGX-39HP BM-C-41 Pipeline Horizontal Ocean Star 77 Km 128m Albian: 1,000m (horizontal section)
AX OGX-52 BM-C-41 Tambora Ocean Ambassador 93 Km 128m Santonian: 5m Albian: 96m
AS OGX-51DP PN-T-68¹ Califórnia - 2DP QG-1 Onshore Block Devonian: 8m
AV OGX-49 PN-T-68¹ Fazenda São José BCH-05 Onshore Block -
CONCLUDED WELLS (4 OF 7)
45
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
AY OGX-53D BM-C-41 Waimea – 2D Pride Venezuela 84 Km 132m Albian: 71m
BB OGX-57 PN-T-68¹ Fazenda São José - 2 QG-1 Onshore Block -
AT OGX-47 BM-S- 59 Maceió Ocean Quest 110Km 185m Santonian: 51m
AZ OGX-54 BM-C-41 Fuji - 2 Ocean Lexington 81Km 136m Albian: 24
BC OGX-58DP BM-C-41 Tambora Ocean Ambassador 93Km 128m -
BA OGX-56D BM-C-41 Fuji – 1D Ocean Star 77Km 128m Albian: 60m
BD OGX-59 PN-T-49¹ Fazenda Torrão BCH-05 Onshore Block Devonian: 9m
BG OGX-62 BM-C-40 Ingá - 1 Ocean Lexington 93Km 105m Albian-Cenomanian: 20m Santonian: 26m
AW OGX-55HP BM-C-41 Waimea – 3HP Sea Explorer 84Km 131m Albian: >1,000m (horizontal section)
BE GVR-1D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
BF OGX-61 BM-C-41 Illimani – 2 Ocean Ambassador 87 Km 124m Albian: 9m
BJ OGX-66 PN-T-67¹ Angical BCH-05 Onshore Block -
BI OGX-65D BM-C-41 Waimea – 4D ENSCO 5002 83 km 135m Albian: 97m
BG OGX-64DP BM-C-40 Ingá – 1DP Ocean Lexington 93 km 105m Santonian: 23m
BM PERN-1 BM-ES-374 Moriche Ocean Star 52 km 1,148m -
BP OGX-69 BM-C-41 Fuji - 4 ENSCO 5002 81 km 125m Albian: 38m
BN GVR-3D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
BO GVR-2D PN-T-68¹ Gavião Real BCH-05 Onshore Block Development well
BQ OGX-70 BM-C-41 Pipeline - 5 Ocean Lexington 80 km 123m -
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30%
CONCLUDED WELLS (5 OF 7)
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30% 4OGX has 50% W.I. and Perenco is the operator 46
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
AY OGX-60HP BM-C-41 Waimea – 2D ENSCO 5004 84 km 132m Albian: >1,000m (horizontal section)
BH OGX-63 BM-S-57 Fortaleza Ocean Quest 102 km 155m Albian: 110m Aptian: 150m (column)
BL OGX-67 BM-C-40 Ingá - 2 Ocean Ambassador 93 km 111m -
BS OGX-71 BM-C-40 Ingá - 3 Ocean Ambassador 93 km 112m -
BX OGX-73 BM-C-41 Osorno – 1 Ocean Ambassador 78 km 130m Albian: 37m
BT GVR-4D PN-T-681 Gavião Real QG-1 Onshore Block Development well
BR PERN-2 BM-ES-384 Guarapari Ocean Star 110 km 823m -
BU GVR-5D PN-T-681 Gavião Real BCH-05 Onshore Block Development well
BV OGX-72 BM-C-41 Pipeline – 7 Ocean Lexington 78 km 130m Albian: 129m
BZ GVR-6D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
BI OGX-68HP BM-C-41 Waimea – 4HP ENSCO 5004 83 km 135m Albian: > 1,000m (horizontal section)
CA OGX-76 BM-C-40 Peró - 1 Ocean Lexington 96 km 103m Albian: 6m
BY OGX-75 BM-C-41 Tambora – 3 Ocean Ambassador 86 km 130m Albian: 49m
CB OGX-77 PN-T-85¹ Fazenda Axixá BCH-05 Onshore Block Devonian: 2m
BW OGX-74 BM-S-59 Natal – 1 Ocean Quest 115 km 196m Santonian: 6m
CD GVR-8D PN-T-68¹ Gavião Real BCH-12 Onshore Block Development well
CG OGX-80 BM-C-41 Pipeline – 6 Ocean Lexington 76 km 128m Albian: 51m
CH OGX-81 BM-C-41 Tambora – 2 Ocean Ambassador 87 km 139m Eocene: 6m Albian: 62m
CF GVR-7DA PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
CONCLUDED WELLS (6 OF 7)
47
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
CE OGX-79 BM-C-39 Itacoatiara ENSCO 5004 89 km 102m Albian: 64m
CK OGX-82 PN-T-85¹ Fazenda São Francisco BCH-5 Onshore Block Devonian: 3m
CM OGX-84 BM-C-40 Ingá-4 Ocean Ambassador 96 km 107m -
CJ GVR-9 PN-T-68¹ Gavião Real BCH-12 Onshore Block Development well
CC OGX-78 BM-C-43 Honolulu ENSCO 5002 99 km 320m Aptian: 67m
CL OGX-83D BM-C-41 Tupungato - 1D Ocean Lexington 86 km 132m Albian: 83m
CN GVR-10D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
CP OGX-86 BM-C-39 Camboinhas ENSCO 5004 84 km 101m -
CQ OGX-87 BM-C-42 Villarrica Ocean Ambassador 87 km 138m Maastrichtian: 8m Paleocene: 2m
CR OGX-88 PN-T-68¹ Bom Jesus - 1 BCH-5 Onshore Block Carboniferous: 36m
CS GVR-12D PN-T-68¹ Gavião Real BCH-12 Onshore Block Development well
CT GVR-14D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
CX GVR-11D PN-T-68¹ Gavião Real BCH-12 Onshore Block Development well
CU OGX-89D BM-S-59 Natal – 2D Ocean Quest 111 km 170m Santonian: 7m
CV OGX-90D BM-C-41 Fuji - 3D ENSCO 5004 82 km 128m Albian: 2m
CW OGX-91D PN-T-67¹ SW Bom Jesus BCH-5 Onshore Block Carboniferous: 23m
DE OGX-95 PN-T-67¹ NW Bom Jesus BCH-5 Onshore Block Carboniferous: 4m
DD GVR-13D PN-T-68¹ Gavião Real BCH-12 Onshore Block Development well
CO OGX-85 BM-S-57 Fortaleza – 1 Ocean Star 85 km 155m Under analysis
CZ OGX-92 PN-T-84¹ Faz. Santa Maria TUS-125 Onshore Block -
DC OGX-93 PN-T-84¹ Rio Corda QG-1 Onshore Block -
DD GVR-15D
(Disposal) PN-T-68¹ Gavião Real TUS-125 Onshore Block Disposal well
CY TBMT-1D/2HP BM-C-39 Tubarão Martelo Field Ocean Lexington 90 km 105m Development well
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30% 4OGX has 50% W.I. and Perenco is the operator
CONCLUDED WELLS (7 OF 7)
48
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
DH OGX-97 PN-T-67¹ Basílios BCH-12 Onshore Block Gas shows
DI OGX-98 PN-T-68¹ N California QG-1 Onshore Block -
DF OGX-96 PN-T-50¹ Peritoró BCH-5 Onshore Block -
DG TBMT-3D/4HP BM-C-39 Tubarão Martelo Field Ocean Star 89 km 106m Development well
DD GVR-16D
(Disposal) PN-T-68¹ Gavião Real TUS-125 Onshore Block Disposal well
DK OGX-100 BM-C-38² Viedma Ocean Lexington 75 km 139m Upper Cretaceous: 52m
DA TBAZ-1HP BM-C-41 Tubarão Azul Field ENSCO 5002 84 km 133m Development well
DJ OGX-99 BM-C-37² Cozumel ENSCO 5004 67 km 134m -
DL OGX-101 PN-T-68¹ Roncador QG-01 Onshore Block -
DM OGX-102 PN-T-67¹ Esperantinópolis BCH-12 Onshore Block Devonian: 3m
DF OGX-103 PN-T-50¹ Peritoró-2 BCH-5 Onshore Block -
DN OGX-104 BM-C-37² Tulum Ocean Lexington 69 km 123m Santonian: 35.5
DO OGX-105 PN-T-85¹ Rocha Lima QG-1 Onshore Block -
¹ OGX Maranhão has 70% W.I. ² OGX has 70% W.I. and Maersk 30% 4OGX has 50% W.I. and Perenco is the operator
TPPs
Parnaíba II
PARNAÍBA BASIN
Revenue Schematic
(OGX Maranhão and Petra)
$
$
$
(by Jan/14 20 year contract
50% take-or-pay)
(by Jan/13 15 year contract 0% take-or-pay)
(MPX and Petra)
Parnaíba I
Future Projects
Gas Producers
49
Gas Sale Contract with MPX