OGX Management Presentation


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

OGX Management Presentation

  1. 1. Management Presentation<br />
  2. 2. Disclaimer<br />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.<br />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.<br />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. <br />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.<br />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.11<br />2<br />
  3. 3. Agenda<br /><ul><li>OGX Overview
  4. 4. OGX Portfolio
  5. 5. OGX Operations
  6. 6. Path to Production
  7. 7. Financial Overview
  8. 8. Appendix</li></ul>Lastupdate: 07/13/11<br />3<br />
  9. 9. OGX Overview<br />
  10. 10. 2<br />1<br />World-class E&P portfolio with multi-billion barrels of discoveries mostly in shallow waters and onshore<br />All key equipment already secured from leading worldwide suppliers for exploration and initial production<br />4<br />3<br />Solid cash position to support exploratory commitment and beginning of production<br />Experienced management team with proved execution capability<br />5<br />OGX Positionning<br />
  11. 11. OGX Main Accomplishments<br />OSX-1 and initial production<br />Bond: US$ 2.6bn raised<br />OGX Main Accomplishments<br />Updated OGX portfolio to 10.8 bn(1)boe of potential resources<br />5 onshore blocks acquired in Colombia<br />Oct/11<br />High productivity horizontal well<br />FPSO secured for 20 years<br />OGX included in the Ibovespa Index<br />US$1.3 bnraised through an equity Private Placement<br />21 blocks acquired during the 9th Bidding Round<br />Beginning of thedrilling campaign<br />May/11<br />Apr/11<br />Acquisition of 70% stake in the Parnaíba Assets<br />Feb/11<br /><ul><li>Total investments of US$ 3.2 bn of Drilling Capex and Bonus Signature + US$ 218 M of Seismic Campaign
  12. 12. Total equity raised to date: US$8.0 bn</li></ul>Jun/10<br />IPO: US$4.1 bn raised <br />Jan/10<br />OGX Creation<br />Sep/09<br />Survey and interpretation of the 3D seismic data<br />Aug/09<br />Procurement of all equipment and services necessary to initiate the drilling campaign<br />Jun/08<br />Nov/07<br />Jul/07<br />Proven execution capability (from concept to first oil in unprecedented timing) with fully established operations comprising more than 5,000 people<br />(1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports<br />6<br />
  13. 13. (1)<br />Free Float<br />Free Float<br />39%<br />61%<br />Petróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$30 Billion)<br />99.99%<br />66.67% (4)<br />Petróleo e Gás Ltda. <br />Maranhão Petróleo e Gás Ltda.<br />70%<br />100%<br />OGX Ownership and Corporate Structure<br /><ul><li>Daily traded average volume (1 month): ~ US$184 million
  14. 14. ~33 thousand investors
  15. 15. 3rdmost representative stock in Ibovespa index 4.1%
  16. 16. Most liquid common share</li></ul>99.99%<br />OGX Campos Petróleo e Gás S.A. <br />30%<br />100%<br />7 Blocks <br />7 Blocks <br />20 Blocks <br />7 - Parnaiba (70%) (2)<br />5 - Campos (100%) (2)<br />2 - Campos (50%)<br />5 - Santos (100%) (2)<br />5 - Espirito Santo (50%)<br />5 - PAMA (100%) (2)<br />5 - Colombia (100%) (2)<br />(1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”)<br />(2) OGX as operator<br />(3) Market data as of May 17th<br />(4) MPX S.A. holds 33.33%<br />7<br />
  17. 17. CEO<br />Eike Batista<br />Gen. Exec. Officer<br />Paulo Mendonça (38)<br />Oil & Gas Commercialization<br />Joaquim Dib Cohen (32)<br />Exploration Officer<br />Paulo Mendonça (38)<br />General Counsel <br />José Roberto Faveret<br />CFO<br />Marcelo Torres<br />Production Officer<br />Reinaldo Belotti(34)<br />ExplorationCampos-ES<br />Paulo Ricardo (28)<br />Procurement<br />Olavo Foerch (32)<br />Production Development<br />José Brito (42)<br />Exploration Santos and Eq. Margin<br />Edmundo Marques (24)<br />Reservoir & Reserves<br />Roberto Toledo (31)<br />Drilling<br />Ricardo Juiniti (27)<br />E&P Laboratory<br />Dolores Carvalho (35)<br />Onshore Basin<br />Celso Martins (34)<br />Logistics<br />Billy Pinheiro (30)<br />Strategic Alliances<br />Luiz Reis (45)<br />International<br />Ernani Posrche (33)<br />Production<br />Ricardo Abiramia (24)<br />New Areas Executive Manager<br />Paulo de Tarso Guimarães (34)<br />GeologicalOperations<br />Moacir Santos (38)<br />Applied Technology<br />Marcos Amaral (28)<br />HSE<br />Leandro Leme (31)<br />Highly successful and committed management team, <br />Combining unique intellectual capital and superior execution skills <br />Management Organization Structure (1)<br />(1) Parentheses represent years experience in the E&P industry<br />8<br />
  18. 18. PBR success index<br />Exploratory Team<br /><ul><li>Paulo Mendonça led the Petrobras exploration team from 2002 to 2007
  19. 19. Success index in excess of 60% on average offshore Brazil from 2002-2007 whilst at Petrobras
  20. 20. Over 10 billion boe and more than 50 new fields discovered</li></ul>Proven track record having opened several new oil frontiers, including the pre-salt, and discovering over 50 new oil fields<br />Highly Qualified Exploration Team<br />9<br />
  21. 21. Brazil: Vast Untapped Oil & Gas Potential<br />Brazil: Vast Untapped Oil & Gas Potential<br />New provinces could propel Brazil into top reserves holders<br />Still significantly under-explored<br />Largest oil and gas discoveries in the world<br />% of sedimentary basins under concession<br />+ 35 bn boe<br />SaudiArabia<br />Venezuela<br />Iran<br />Iraq<br />Kuwait<br />Brazil post Tupi<br />UAE<br />Russia<br />Libya<br />Kazakhstan<br />Nigeria<br />Canada<br />US<br />Qatar<br />China<br />Angola<br />Brazil<br />Licensed <br />4%<br />BrazilTurkmenistan Iran <br />Kazakhstan China <br />Russia<br />Australia<br />Kuwait <br />Israel <br />SaudiArabiaIndia<br />Indonesia Venezuela Papua <br />NewGuineaGhana<br />Unlicensed 96%<br />Source: ANP<br />Oil & gas in the world<br />Oil and Gas Discovered Volumes<br />2000 – 2010 (Bn boe)<br />Oil Resources- December 2009 (Bn bbl)<br />Source: EIA-DOE, BP Statistical Review of World Energy 2010, Saudi Aramco, UPPSALA University, Petrobras, ANP and OGX analysis<br />Source: IHS<br />Source: BP Statistical Review of World Energy 2010 & analyst estimates<br />Brazil’s historical under-exploration underpins massive growth opportunities for OGX<br />10<br />
  22. 22. OGX Portfolio<br />
  23. 23. <ul><li>34 blocks: 29 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 3 Colombian sedimentary basins
  24. 24. Unique portfolio with 10.8 billion potential recoverable barrels of oil equivalent (boer)
  25. 25. OGX’s business plan is based on 4.1 billion barrels already discovered in the shallow waters of the Campos Basin</li></ul>Portfolio<br />Shallowwater<br />~120m<br />Shallowwater<br />~150m<br />Deepwater<br />~1,000m<br />Shallowwater<br />~60m<br />12<br />OGX Portfolio<br />
  26. 26. Campos Basin<br /><ul><li>5.7 bn bbl of net 3C, net delineation and net mean risked prospective resources, evaluated by D&M (pre-salt not included)
  27. 27. 5 blocks operated by OGX (100% owned) and 2 operated by Maersk Oil (50% owned)
  28. 28. Total area of 1,177 km2
  29. 29. Average water depth of ~120m
  30. 30. 41 wells drilled
  31. 31. 100% success rate</li></ul>OGX’s discovered accumulations confirm a new hydrocarbon province in the southern Campos Basin<br />Campos Basin: Low Risk, Shallow Water and Large<br />13<br />
  32. 32. Santos Basin: High Potential<br />Santos Basin<br /><ul><li>1.8 bnboe of net risked prospective resources (POS of 27%), evaluated by D&M
  33. 33. 5 blocks operated by OGX (100% owned)
  34. 34. Total area of 820 km²
  35. 35. Average water depth of ~150 m
  36. 36. 9 wells drilled
  37. 37. ~ 65% success rate</li></ul>Santos basin is oneofthemostpromisingexploratoryareas in brazil, withsignificantpotential for gasand light oil<br />14<br />
  38. 38. Parnaíba basin<br />Newfrontierbasinwithhighpotential for gasproduction<br />Parnaíba Basin: Major Gas Province<br /><ul><li>1.0 bn boe of net risked mean prospective resources POS (17%) and net 3C, evaluated by D&M
  39. 39. 7 blocks operated by OGX (47% owned)
  40. 40. Total area of 21,500 km²
  41. 41. Monetization of gas through thermoelectric plants to be developed by MPX/Petra (1,863 MW already licensed)
  42. 42. 100% success rate (7 wells drilled)
  43. 43. Commerciality declared for 2 accumulations</li></ul>15<br />
  44. 44. Pará Maranhão Basin: PromisingNewFrontier<br />Pará-Maranhão Basin<br /><ul><li>447 mnboe of net mean risked prospective resources (POS of 21%), evaluated by D&M
  45. 45. 5 blocks operated by OGX (100% owned)
  46. 46. Total area of 960 km²
  47. 47. Average water depth of ~60m
  48. 48. 1st well to be drilled in 2H11</li></ul>Newfrontierwithgeologicalmodel similar to westafrica, wheresignificantdiscoveriesweremaderecently<br />16<br />
  49. 49. Espírito Santo Basin: NewFrontier in DeepWater<br />Espírito Santo Basin<br /><ul><li>817 mnboe of net mean risked prospective resources (POS of 33%), evaluated by D&M
  50. 50. 5 blocks operated by Perenco (50% owned)
  51. 51. Total area of 3,620 km²
  52. 52. Average water depth of ~1,000 m
  53. 53. 1st well to be drilled in 2H11</li></ul>Thenewfrontierof Espírito Santo hasproven to be a veryactivepetrolific system<br />17<br />
  54. 54. Colombia: Cesar-Ranchería, Middle and Lower Magdalena Valleys: Great Upside Potential<br />Colombian Basins<br />MARACAIBO <br />BASIN<br /><ul><li>1.1 bnboe of net prospective resources and net potential petroleum quantities, evaluated by D&M
  55. 55. 5 blocks operated by OGX (100% owned), 3 of which are located close to Maracaibo Basin (~80 bnboe discovered and ~50 bnboe already produced)
  56. 56. Beginning of the Seismic Campaign in 2H11</li></ul>Balancedportfolioofexploratoryassets, combiningproductionregionswithlessexploredareasnext to themaracaibobasin, oneofthemostprolificprovinces in the world<br />18<br />
  57. 57. Portfolio Breakdown<br />19%<br />Onshore<br />8%<br />Deep Water<br />Oildiscoveries of 4.1 bn bbl are already under production development in the shallow waters of campos basin <br />OGX Portfolio Potential: Breakdown<br />73%<br />Shallow<br />Water<br />21%<br />Gas<br />79%<br />Oil<br />Note: “POS “ defined as geological probability of success<br />(1) The OGX portfolio potential was calculated by OGX based on volume estimates contained in the DeGolyer and MacNaughton Reports<br />(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<br />(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<br />(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<br />(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<br />19<br />
  58. 58. OGX Operations<br />
  59. 59. Onshore Drilling<br />Offshore Drilling<br />Ocean Lexington (Diamond):<br /><ul><li>Daily Rate: US$ 335k
  60. 60. Max. well depth: 20,000 ft
  61. 61. Contract Expires: Feb.2013 (+one optional year)</li></ul>Ocean Ambassador (Diamond): <br /><ul><li>Daily Rate: US$ 260k
  62. 62. Max. well depth: 20,000 ft
  63. 63. Contract Expires: Sep.2012 (+ one optional year)</li></ul>Ocean Quest (Diamond):<br /><ul><li>Daily Rate: US$ 270k
  64. 64. Max. well depth: 25,000 ft
  65. 65. Contract expires: Dec.2012 (+ one optional year)</li></ul>Ocean Star (Diamond):<br /><ul><li>Daily Rate: US$ 310k
  66. 66. Max. well depth: 25,000 ft
  67. 67. Contract Expires: Feb.2013 (+ one optional year)</li></ul>QG-1 (QueirozGalvão):<br /><ul><li>Daily Rate: US$ 28k
  68. 68. Max. well depth: 14,750 ft
  69. 69. Contract Expires: Jan.2012</li></ul>BCH-05E (BCH):<br /><ul><li>Daily Rate: US$ 31.5k
  70. 70. Max. well depth: 11,500 ft
  71. 71. Contract Expires: Feb.2012
  72. 72. 3rd rig being contracted</li></ul>Sea Explorer (Pride):<br /><ul><li>Daily Rate: US$ 265k
  73. 73. Max. well depth : 20,000 ft
  74. 74. Contract Expires: Nov.2011 (+two optional years)</li></ul>Pride Venezuela (Pride):<br /><ul><li>Daily Rate: US$ 265k
  75. 75. Max. well depth: 20,000 ft
  76. 76. Contract Expires: Nov.2011</li></ul>Ocean Scepter (Diamond):<br /><ul><li>Daily Rate: US$ 135k
  77. 77. Max. well depth: 30,000 ft
  78. 78. Contract Expires: Jan.2012 (+one optional year)</li></ul>Drilling campaign expanded – 8 rigs already operating simultaneously<br />Exploration Drilling Campaign<br />21<br />
  84. 84. OGX Team: ~270 employees
  85. 85. Over 5,000 peoplededicated
  86. 86. 3D Room / IOSC</li></ul>Operational Capabilities and Structure<br />22<br />
  87. 87. Path to Production<br />
  88. 88. Campos Exploratory Drilling Strategy and Results<br />Drilling Strategy<br />Drilling Results<br /><ul><li>1st phase strategy (from Mar/08 to Dec/10)
  89. 89. Seismic campaign to better image the areas and reduce risks
  90. 90. Discover the maximum amount of oil
  91. 91. 19 wells drilled 1
  92. 92. 2nd phase strategy (from Dec/10 to Mar/13)
  93. 93. 18 wells drilled 2
  94. 94. Focus on the appraisal drilling campaign to delineate existing discoveries
  95. 95. Continue exploratory program with drilling of wildcat wells
  96. 96. Begin production in October 2011
  97. 97. Drilling of 37 wells with hydrocarbons
  98. 98. OGX analysis supports recoverable resources of 4.1 billion barrels
  99. 99. Oil columns of up to ~250 meters
  100. 100. Net pay up to ~150 meters
  101. 101. Well results confirm OGX’s geological models for the Campos Basin
  102. 102. DSTs (drill stem tests) support conservative production estimate of 10 – 20 kbpd
  103. 103. One of the best DSTs ever performed in Brazil, with a production potential of 40,000 barrels per day
  104. 104. OGX production estimates are supported by results from other fields in Campos using current technology</li></ul>Notes:1 Number of wells concluded in 2010 and included in D&M’s reports2 Number of wells concluded in 2011<br />24<br />
  105. 105. Campos Basin: Focusing on Wildcat & Appraisal Wells<br />Wildcat Wells<br />Appraisal Wells<br />Note:1 Numbers indicate the well drilling area as per D&M’s Dec/10 reports and net pay<br />26 wildcat wells and 19 appraisal wells drilled with hydrocarbons and results which support expectations<br />25<br />
  106. 106. Campos Basin: Development Business Plan<br />Campos Basin <br />Development Plan<br />Initial Projects<br />Project 2Waikiki Complex 1st oil date: 4Q13<br /><ul><li>4.1 bnbbl
  107. 107. Shallow waters
  108. 108. Average production per well 10 – 20 kbpd
  109. 109. 12 FPSOs and 11 WHPs
  110. 110. 5 FPSOs and 2 WHPs already secured
  111. 111. Average field life
  112. 112. Capex US$ 2/bbl
  113. 113. Opex <US$ 16/bbl
  114. 114. 22 development wells
  115. 115. 14 production
  116. 116. 8 injection
  117. 117. 1 FPSO and 1 WHP
  118. 118. OSX-3 and WHP-2
  119. 119. Oil of 23° - 28° API
  120. 120. Water depth: 120m
  121. 121. Average production per well 15 – 20 kbpd</li></ul>Project 1 Waimea Complex 1st oil date: Oct. 2011<br /><ul><li>42 development wells
  122. 122. 28 production
  123. 123. 14 injection
  124. 124. 3 FPSOs and 2 WHPs
  125. 125. OSX-1, OSX-2 and WHP-1
  126. 126. Oil of 20° API
  127. 127. Water depth: 140m
  128. 128. Average production per well 10 – 20 kbpd</li></ul>Illustrative<br />26<br />
  129. 129. Recent Horizontal Wells Tested<br />Campos Basin: Positve Horizontal Wells TestResults<br />Drill-stem tests performed in horizontal wells<br />Horizontal wells tested <br />Waimea OGX – 26HP<br /><ul><li>Production capacity of up to 20,000 bbl/day
  130. 130. Oil Quality of 20o API
  131. 131. Tested in Jan/2011</li></ul>Waikiki OGX-44HP<br /><ul><li>Production capacity of up to 20,000 bbl/day
  132. 132. Oil Quality of 23o API
  133. 133. Tested in Jun/2011</li></ul>Pipeline OGX-39HP<br /><ul><li>Production capacity of around 10,000 bbl/day
  134. 134. Oil Quality of 19o API
  135. 135. Tested in Jul/2011</li></ul>3 drill-stem tests already performed in horizontal wells prepared for production <br />and more to come in the second half<br />27<br />
  136. 136. Production Will Begin in the Waimea Accumulation <br />Beginning of Production <br />1st Oil Production Concept<br />Horizontal production well already drilled, completed and successfully tested<br />Wet christmas tree installed<br />Wetchristmastree<br />OSX-1<br />Electrical submersible pump installed<br />Buoy<br />RisersandUmbilicals<br />Flexiblelines<br />Hydraulic Power Unit (HPU) installed<br />Mooringsand Piles<br />Umbilicals delivered<br />Maincharacteristics:<br /><ul><li>Productionpotentialof 40 kbpd w/ capacitylimited to 20 kbpd
  137. 137. Oilqualityof 20° API
  138. 138. Waterdepthof 140 meters</li></ul>Flexible lines delivered<br />Anchor system (moorings and piles) delivered<br />Installation support vessel delivered<br />EWT approved by ANP (National Petroleum Agency)<br />Electricalsubmersiblepump<br />Horizontal Well<br />OGX first oil expected for October/November through Extended Well Test (EWT)<br />Illustrative frames<br />28<br />
  139. 139. Campos Basin: Equipment Secured<br />FPSO OSX-1<br />Wet Christmas Tree<br />Flexible Lines<br />Campos Basin: Equipment Secured<br />Critical equipment and services status<br />Main equipment in place<br /><ul><li>Equipment
  140. 140. Wet Christmas Tree (WCT): Already installed
  141. 141. Umbilical Terminal Assembly (UTA): Contracted
  142. 142. Hydraulic Power Unit (HPU): Delivered in April, 2011
  143. 143. Flexible Lines: Contracted with Wellstream
  144. 144. Electrical Submersible Pump (ESP): Contracted with Baker
  145. 145. 80 kbpd of processing capacity & 950,000 barrels of storage capacity
  146. 146. Expected arrival: 3Q11
  147. 147. Already installed
  148. 148. Produced by GE Oil & Gas
  149. 149. Services
  150. 150. Installation Vessel – Anchor System, Flexible Lines and Umbilicals: Contracted with WS and Aker
  151. 151. Mud line and Subsurface analysis for FPSO mooring and WHP piles: Contracted with FUGRO – already completed
  152. 152. Waimea Area Survey: Contracted with FUGRO
  153. 153. Already manufactured
  154. 154. Produced by Wellstream</li></ul>Aker Wayfarer Vessel<br /><ul><li>Contracted with Aker</li></ul>29<br />
  155. 155. Final StepsTowardsProduction<br />Flexible lines / umbilicals connection and risers installation<br />Mooringsand Piles installation<br />Arrival of the FPSO OSX-1<br />Beginningofproduction<br />1<br />3<br />2<br />Arrival of the Buoy and installation <br />Buoy hook-up and connection to the FPSO<br />5<br />4<br />6<br />Illustrative frames<br />30<br />
  156. 156. WaimeaComplexProductionConcept<br />Pioneer Project Development<br />Pioneer Production Concept<br /><ul><li>5 development wells connected to the FPSO OSX-1
  157. 157. 3 horizontal production wells
  158. 158. 1st production well, OGX-26HP, ready for production
  159. 159. 2nd production well, OGX-55HP, currently being drilled
  160. 160. 3rd production well, OGX-53D, currently being drilled
  161. 161. Average production per well 10–20 kbpd
  162. 162. 2 subsea injection wells
  163. 163. 1 FPSO: OSX-1
  164. 164. OSX-1 expected arrival for September/2011
  165. 165. OGX-55HP and OGX-53D wells to be hooked-up to OSX-1 after the declaration of commerciality next year
  166. 166. With 3 production wells on stream, OGX should reach production levels of ~50 kbpd</li></ul>ProductionWell 1<br />(OGX-26HP)<br />ProductionWell 3<br />(OGX-53D)<br />InjectionWell 2<br />InjectionWell 1<br />ProductionWell 2<br />(OGX-55HP)<br />Development Wells<br />Illustrative frame<br />31<br />
  167. 167. Operational Expenditures<br />(Leased Equipment)<br />Opex<br /><US$ 16/bbl<br />FPSOOil capacity: 100 K bpd<br />Liquid capacity: 160 K bpd<br />Oil will be offloaded<br />WHPCapacity: 30 wellsDrilling package on topside<br />WHP Subsea Flow Lines<br />Power line<br />Gas Lift line<br />Service line<br />Water Injection line<br />Production line<br />Test line<br />Drilling + Completion<br />Development wells with dry completion<br />Gaswillbereinjected, used for gasliftorpowergeneration<br />WaterInjection<br />Capital Expenditures<br />Campos Basin: Replicable Development Concept<br />Capex<br />US$ 2/bbl<br />Note: Please see details in the Appendix slide: “Campos Basin: Typical Production Project”<br />32<br />
  168. 168. WHPs<br />FPSOs<br />Unit<br />2011<br />… 2013<br />2014<br />2015<br />2016<br />Unit<br />2013<br />2014<br />2014<br />Waimea<br />OSX-1<br />WHP-1<br />Waimea<br />3rd Q<br />1st Q<br />Waimea<br />OSX-2<br />2nd Q<br />WHP-2<br />Waikiki<br />2nd Q<br />Waikiki<br />OSX-3 <br />3rd Q<br />WHP-3 <br />3rd Q<br />OSX-4<br />2nd Q<br />WHP-4<br />4th Q<br />OSX-5<br />4th Q<br />WHP-5<br />4th Q<br />OSX-6<br />4th Q<br />WHP-6<br />4th Q<br />OSX-7<br />4th Q<br />WHP-7<br />1st Q<br />OSX-8<br />1st Q<br />WHP-8<br />2nd Q<br />OSX-9<br />3rd Q<br />WHP-9<br />3rd Q<br />OSX-10<br />4th Q<br />WHP-10<br />4th Q<br />OSX-11 <br />1st Q<br />WHP-11<br />OSX-12 <br />4th Q<br />1st Q<br /><ul><li>OSX-1 to be delivered in August 2011
  169. 169. OSX-2 and OSX-3 to be built in world-class Singaporean shipyards by SBM and Modec
  170. 170. OSX-4 and OSX-5 hulls already acquired by OSX
  171. 171. WHP-1 and WHP-2 with detailed engineering ongoing (EPC awarded to Techint by OSX)</li></ul>FPSOs and WHPs Expected Deliveries<br />Production equipment allocated to begin operations until 2013<br />33<br />
  172. 172. WHPs<br />FPSOs<br />OSX-1: <br /><ul><li>Production capacity of 80 kbpd and storage of 950 kbbl
  173. 173. Average Day rate of US$ 263 k
  174. 174. Arrival expected to Sep/11</li></ul>OSX-2: <br /><ul><li>Production capacity of 100 kbpd and storage of 1.3 Mbbl
  175. 175. Expected Average day rate of US$ 290 k
  176. 176. Contracted by OSX with SBM</li></ul>OSX-3: <br /><ul><li>Production capacity of 100 kbpd and storage of 1.3 Mbbl
  177. 177. Expected Average day rate of US$ 290 k
  178. 178. Contracted by OSX with MODEC</li></ul>WHP-1: <br /><ul><li>Capacity to drill up to 30 wells
  179. 179. Four production wells on-stream by the end of 2013
  180. 180. Detailed engineering ongoing (EPC awarded to Techint by OSX)
  181. 181. Two sister VLCC´s (Very Large Crude Oil Carriers) purchased on November, 2010 by OSX to be converted into FPSOs</li></ul>WHP-2: <br /><ul><li>Capacity to drill up to 30 wells
  182. 182. Three production wells on-stream by the end of 2013
  183. 183. Detailed engineering ongoing (EPC awarded to Techint by OSX)</li></ul>OSX-5: <br /><ul><li>Production capacity of 100 kbpd and storage of 1.3 Mbbl
  184. 184. Order placed for Leasing contract and EPCI under procurement</li></ul>OSX-4: <br /><ul><li>Production capacity of 100 kbpd and storage of 1.3 Mbbl
  185. 185. Order placed for Leasing contract and EPCI under procurement</li></ul>Secured Production Equipment<br />34<br />
  186. 186. OGX Strategy to Expedite Production<br />Pre-Drilling Strategy<br />Available Drilling Resources<br /><ul><li>Expedite drilling process and accelerate production ramp-up
  187. 187. OGX plans to drill on average five horizontal wells prior to the arrival of the WHPs from semi-submersible rigs
  188. 188. Upon arrival of each WHP, pre-drilled wells should ramp-up plateau production in approximately three quarters</li></ul>Ocean Lexington (Diamond):<br /><ul><li>Daily Rate: US$ 335k
  189. 189. Max. well depth: 20,000 ft
  190. 190. Contract Expires: Feb.2013
  191. 191. (+ one optional year)</li></ul>Ocean Ambassador (Diamond): <br /><ul><li>Daily Rate: US$ 260k
  192. 192. Max. well depth: 20,000 ft
  193. 193. Contract Expires: Sep.2012 (+ one optional year)</li></ul>Flex FPSOs<br /> <br /><ul><li>Given the significant number of discoveries and their similarities, OGX has the benefit of accelerating the procurement process through the use of Flex FPSOs
  194. 194. Flex FPSOs have capacity of processing oil for a broader range of APIs and GOR (gas/oil ratio)
  195. 195. Standard design (same characteristics for all FPSOs)
  196. 196. Capitalizes on economies of scale</li></ul>Ocean Quest (Diamond):<br /><ul><li>Daily Rate: US$ 270k
  197. 197. Max. well depth: 25,000 ft
  198. 198. Contract expires: Dec.2012 (+ one optional year)</li></ul>Ocean Star (Diamond):<br /><ul><li>Daily Rate: US$ 310k
  199. 199. Max. well depth: 25,000 ft
  200. 200. Contract Expires: Feb.2013 (+ one optional year)</li></ul>Sea Explorer (Pride):<br /><ul><li>Daily Rate: US$ 265k
  201. 201. Max. well depth : 20,000 ft
  202. 202. Contract Expires: Nov.2011 (+ two optional years)</li></ul>Pride Venezuela (Pride):<br /><ul><li>Daily Rate: US$ 265k
  203. 203. Max. well depth: 20,000 ft
  204. 204. Contract Expires: Nov.2011</li></ul>35<br />
  205. 205. Campos Basin: Oil Production Ramp-Up<br />150<br />CAGR : 174%<br />Oil Production Target (kbpd) ¹<br />50<br />20<br />2011<br />2012<br />2013<br />Note:<br />1 To be reached through the end of the period<br />36<br />
  206. 206. Moving Forward with Parnaíba Basin Business Plan<br />Paraníba Complex<br />Project 1 1stgas: 2H12<br />23 production wells<br /><ul><li>Declaration of commerciality of two fields (Gavião Real & GaviãoAzul) already submitted to ANP
  207. 207. Initial production expected in 2H12
  208. 208. Low capital and operating costs
  209. 209. Production of 5.7 M m³per day in 2013 (2.7 M m³per day net to OGX S.A. or ~15 kboepd)
  210. 210. Second seismic crew contracted to work on the southern blocks
  211. 211. Recently approved leasing agreement of 2 additional rigs
  212. 212. Gas to be sold to MPX Power Plants
  213. 213. MPX has obtained an additional 1,859 MW of installation license, totaling 3,722 MW
  214. 214. MPX acquired 2 projects from Bertin with a total capacity of 660 MW, which will be transferred to Parnaíba’s Complex after ANEEL’s approval
  215. 215. Energy generated by MPX’s power plants will be sold to the energy markets</li></ul>Gavião Azul <br />Gavião Real <br />Legend:<br /> Seismic Lines<br />37<br />
  216. 216. Parnaíba Basin: Project Development<br />Parnaíba Development Schematic<br />Gas Thermal Power Plant Development<br />OGX Maranhão (70%) + Petra (30%) investments<br />MPX + Petra<br />investments<br /><ul><li>A site to construct a power plant in the PN-T-68 block has already been acquired by MPX
  217. 217. MPX has obtained an installation license for 1,863 MW and an environmental license for the development of an additional 1,859 MW, totaling 3,722 MW</li></ul>Capex field life<br /><ul><li>Total drilling cost: US$ 340 M (includes re-completion cost)
  218. 218. Total facilities1 cost: US$ 110M</li></ul>Gas Thermal Power Plant<br />Production Facility <br />for Dry Gas<br />Short Gas Pipeline(<2 km)<br />Opex field life 2<br /><ul><li>Less than US$ 0.30/1,000 cubic feet </li></ul>Lines<br />Transmission Lines<br />Manifolds<br />Wells<br />Gathering System<br />Notes:<br />1 Facilities cost includes: gathering system (lines and manifolds), a production facility for dry gas and a very short pipeline<br />2 Includes operating and maintenance of production facilities, lines, gas pipelines and wells<br />38<br />
  219. 219. Production Targets<br />OGX Production Targets<br />OGX Offshore Equipment Demand<br />19 units<br />12 units for <br />Campos Basin discoveries<br />In kboepd<br />FPSO<br />24 units <br />11 units for <br />Campos Basin discoveries<br />WHP<br />5 units<br />expected to be used in the<br />Espírito Santo Basin <br />(the only deep water blocks in OGX’s portfolio)<br />TLWP<br /><ul><li>Portfolio potential of 10.8 bn of recoverable boe: >10 years of production growth
  220. 220. Campos and Parnaíbadiscoveries (4.2 bnboe) can support 730,000 boepd of production level
  221. 221. Additional potential resources (6.6 bnboe) would allow OGX to reach and sustain a plateau of 1.4 million boepd from 2019 and beyond
  222. 222. Expected demand of 48 offshore units
  223. 223. Total of 23 units estimated for OGX’s Campos Basin discoveries (12 FPSOs and 11 WHPs)
  224. 224. Strategy to expedite development with production equipment contracted 2-3 years in advance</li></ul>39<br />
  225. 225. Financial Overview<br />
  226. 226. OGX Financial Sources and Uses (2Q11 – 4Q13)<br />Financial Sources and Uses<br />Cash Position of US$ 5.1 bn<br />Financial Highlights<br /><ul><li>Current cash and proceeds from the recent unsecured notes offering, together with operating cash flows from 2011-2013 of approximately $0.5 -$1.0 billion, will be sufficient to cover OGX’s anticipated capital expenditures of approximately $4.0 - $5.0 billion through 2013, while maintaining liquidity of $1.0 - $1.5 billion
  227. 227. Current cash position of US$ 5.1 billion is sufficient to fund the development of Campos and Parnaíba discoveries until OGX reaches stable positive cash flow in 2014</li></ul>Notes:<br />1 As of March 31, 2011<br />2 Includes net financial results<br />3 Represents 40% of Exploration capex (contemplating all OGX basins) and 60% of Development capex (contemplating Campos and Parnaíba discoveries only)<br />41<br />
  228. 228. Appendix<br />
  229. 229. OngoingActivities<br />Parnaíba Basin<br />Campos Basin<br />Santos Basin<br />OGX Blocks Oil & Gas Fields<br />1OGX Maranhão has 70% W.I<br />43<br />
  230. 230. Concluded Wells (1 of 3)<br />Concluded Wells (1 of 4)<br />44<br />
  231. 231. Concluded Wells (2 of 4)<br />45<br />
  232. 232. Concluded Wells (3 of 4)<br />¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator <br />46<br />
  233. 233. Concluded Wells (4 of 4)<br />¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator <br />47<br />
  234. 234. Campos Basin: Typical Production Project<br />Typical Replicable Project Assumptions Campos Basin<br /><ul><li>Distance from shore: 80 km
  235. 235. Water depth: 100 to 150 meters
  236. 236. Recoverable volume: 500 million bbl (low Gas:OilRatio (GOR)): all gas produced will be used for power generation or gas reinjection, if applicable
  237. 237. Equipment oil producing capacity:
  238. 238. 1 FPSO: 100 Kbblpd
  239. 239. 1 WHP: 30 wells
  240. 240. Drilled wells:16 horizontal production wells and 9 injection wells
  241. 241. 5 horizontal production wells pre-drilled from semi-submersible rig
  242. 242. 11 production and 9 injection wells drilled from WHP
  243. 243. Capex:estimated unit cost of approximately US$ 2 / barrel
  244. 244. Pre-drilled wells = US$ 50M (75 days per well)
  245. 245. WHP drilled wells = US$ 20M (75 days per well)
  246. 246. Well completion = US$ 15M (30 days per well)
  247. 247. Package of sub-sea flow lines = US$ 65M
  248. 248. Opex:estimated unit cost lower than US$ 16 / barrel
  249. 249. Leased equipment day rates with high local content (FPSOs US$ 350k / day & WHPs US$ 160k /day)
  250. 250. Operating and maintenance expenditures of US$ 85k / day
  251. 251. Variable operating costs of US$ 3.5 / barrel
  252. 252. Abandonment costs at end of field life of US$ 100M
  253. 253. Production profile:
  254. 254. Achieve production plateau in 3 quarters
  255. 255. Plateau maintained for an additional 4 years
  256. 256. 20 to 22 years of production decline from the plateau thereafter</li></ul>48<br />
  257. 257. OGX IR Contacts: ri@ogx.com.br<br />+ 55 21 2555 6237<br />