Bloomberg News

OGX to Drill More Santos Wells as It Seeks to Boost Reserves

February 01, 2012

(Updates to include additional comments from OGX starting in the second paragraph.)

Feb. 1 (Bloomberg) -- OGX Petroleo e Gas Participacoes SA, the oil explorer controlled by billionaire Eike Batista, plans to drill additional wells at a recent discovery in the Santos Basin and may increase estimated reserves in the area.

OGX, based in Rio de Janeiro, halted drilling at the OGX-63 well to replace the current rig with one that can handle the high pressure encountered in the reservoir, the company said today in a regulatory filing. OGX found hydrocarbons in two separate well sections, including the thickest reservoir the company has found to date in shallow waters of Santos.

OGX will “drill delimitation wells to assess the existing volumes in the area which may potentially surpass current estimates,” the company said.

OGX estimates 1.8 billion barrels of recoverable oil and equivalents at Santos. The company has drilled the well to nearly four miles below the sea floor where it has found a so- called pre-salt reservoir, similar to the geology at Brazil’s biggest discoveries in deep waters of the Atlantic Ocean.

--Editors: Dale Crofts, Carlos Caminada

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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