Thursday, May 27, 2010

Brazil's OGX Finds More Oil In Two Campos Basin Blocks

RIO DE JANEIRO (Dow Jones)--Brazilian oil and gas company OGX Petroleo e Gas Participacoes SA (OGXP3.BR, OGXPY) said two wells in the Campos Basin's BM-C-41 and BM-C-42 blocks showed signs of oil.

The company said it identified an oil-bearing interval in the 1-OGX-13-RJS well in the BM-C-41 block, the second appraisal well for the Vesuvio prospect. The region had a net pay, or reservoir thickness, of 10 meters, OGX said. OGX holds a 100% stake in the block.

OGX also discovered a 110-meter oil column in the 1-OGX-10-RJS well, dubbed Hawaii, in the BM-C-42 block. Carbonate reservoirs in the Aptian section yielded net pay of 40 meters, OGX said. OGX also holds a 100% stake in the BM-C-42 block.

Drilling at both wells has been completed, with the two rigs now moving to other prospects, OGX said. Pride International's Sea Explorer will now tap the Huna prospect, while Diamond Offshore's operated Ocean Lexington will drill in the Pero prospect.

The BM-C-41 block is home to several OGX discoveries. In February, OGX discovered three separate hydrocarbons-bearing reservoirs at the 1-OGX-3-RJS well. The reservoirs were estimated to hold between 500 million and 900 million barrels of recoverable oil.

The independent driller has also had success in the BM-C-42 block, which the company previously estimated to hold recoverable reserves of between 100 million and 200 million barrels of oil.

OGX holds stakes in 29 exploration blocks in the Campos, Espirito Santo, Para-Maranhao, Parnaiba and Santos basins.

Initial drilling success caused the company to ramp up its exploration program. Over the next four years, OGX plans to drill 79 wells--72 offshore and seven on land.

In 2010, OGX will drill 27 wells. Twenty-six of the wells will be drilled offshore, with a single onshore well planned for the Parnaiba Basin.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085;

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