Bloomberg News

OGX and Perenco Drill 2 Dry Wells in Espirito Santo

March 23, 2012

OGX Petroleo e Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, drilled two dry wells in the deep waters of the Espirito Santo Basin with its partner Perenco SA.

OGX and Perenco, who operates the five exploration licenses the two companies have in the basin, plan to drill additional wells in the area, Chief Executive Officer Paulo Mendonca said in a conference call today. OXG fell 3.7 percent to 16.36 reais at 11:06 a.m. in Sao Paulo after earlier falling as much as 4 percent, the most since Feb. 10.

“In addition to the two dry wells, we’ve got three- dimensional seismic that shows a lot of new opportunities,” Mendonca said today in a conference call with analysts. OGX is planning to drill at least two wells in the south of the exploration contract, he said.

OGX started producing its first oil at the Waimea field in January and will produce 10,000 to 13,000 barrels a day during the next few months after testing production of as much as 18,000 barrels a day, Mendonca said. OGX plans to connect four wells to a production platform at the field this year, he said.

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: Carlos Caminada at ccaminada1@bloomberg.net


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