2. 2 Disclaimer 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. 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. 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. 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. 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.
3. 3 Agenda OGX Overview OGX Portfolio OGX Operations Path to Production Financial Overview Appendix Lastupdate: 07/13/11
5. OGX Positioning 1 2 World-class E&P portfolio with multi-billion barrels of discoveries mostly in shallow waters and onshore All key equipment already secured from leading worldwide suppliers for exploration and initial production 4 3 Solid cash position to support exploratory commitment and beginning of production Experienced management team with proved execution capability 5
6. 6 OGX Main Accomplishments OSX-1 and initial production Bond: US$ 2.6bn raised Updated OGX portfolio to 10.8 bn(1)boe of potential resources 5 onshore blocks acquired in Colombia Oct/11 High productivity horizontal well FPSO secured for 20 years Beginning of thedrilling campaign May/11 OGX included in the Ibovespa Index US$1.3 bnraised through an equity Private Placement 21 blocks acquired during the 9th Bidding Round Apr/11 Acquisition of 70% stake in the Parnaíba Assets Feb/11 Total investments of US$ 3.2 bn of Drilling Capex and Bonus Signature + US$ 218 M of Seismic Campaign Total equity raised to date: US$8.0 bn Jun/10 IPO: US$4.1 bn raised Jan/10 OGX Creation Sep/09 Survey and interpretation of the 3D seismic data Aug/09 Procurement of all equipment and services necessary to initiate the drilling campaign Jun/08 Nov/07 Jul/07 PROVEN EXECUTION CAPABILITY (FROM CONCEPT TO FIRST OIL IN UNPRECEDENTED TIMING) WITH FULLY ESTABLISHED OPERATIONS COMPRISING MORE THAN 5,000 PEOPLE (1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports
10. Most liquid common sharePetróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$30 Billion) 99.99% 99.99% 66.67% (4) Petróleo e Gás Ltda. OGX Campos Petróleo e Gás S.A. Maranhão Petróleo e Gás Ltda. 30% 70% 100% 7 100% 7 Blocks 7 Blocks 20 Blocks 5 - Campos (100%) (2) 2 - Campos (50%) 7 - Parnaiba (70%) (2) 5 - Santos (100%) (2) 5 - Espirito Santo (50%) 5 - PAMA (100%) (2) 5 - Colombia (100%) (2) (1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”) (2) OGX as operator (3) Market data as of May 17th (4) MPX S.A. holds 33.33%
11. Management Organization Structure (1) CEO Eike Batista Gen. Exec. Officer Paulo Mendonça (38) Oil & Gas Commercialization Joaquim Dib Cohen (32) Exploration Officer Paulo Mendonça (38) General Counsel José Roberto Faveret CFO Marcelo Torres Production Officer Reinaldo Belotti(34) ExplorationCampos-ES Paulo Ricardo (28) Procurement Olavo Foerch (32) Production Development José Brito (42) Exploration Santos and Eq. Margin Edmundo Marques (24) Reservoir & Reserves Roberto Toledo (31) Drilling Ricardo Juiniti (27) E&P Laboratory Dolores Carvalho (35) Onshore Basin Celso Martins (34) Logistics Billy Pinheiro (30) Strategic Alliances Luiz Reis (45) International Ernani Posrche (33) Production Ricardo Abiramia (24) New Areas Executive Manager Paulo de Tarso Guimarães (34) GeologicalOperations Moacir Santos (38) Applied Technology Marcos Amaral (28) HSE Leandro Leme (31) HIGHLY SUCCESSFUL AND COMMITTED MANAGEMENT TEAM, COMBINING UNIQUE INTELLECTUAL CAPITAL AND SUPERIOR EXECUTION SKILLS 8 (1) Parentheses represent years experience in the E&P industry
12. Highly Qualified Exploration Team PBR success index Exploratory Team Paulo Mendonça 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 10 billion boe and more than 50 new fields discovered PROVEN TRACK RECORD HAVING OPENED SEVERAL NEW OIL FRONTIERS, INCLUDING THE PRE-SALT, AND DISCOVERING OVER 50 NEW OIL FIELDS 9
13. Brazil: Vast Untapped Oil & Gas Potential 10 New provinces could propel Brazil into top reserves holders Largest oil and gas discoveries in the world Still significantly under-explored % of sedimentary basins under concession + 35 bn boe SaudiArabia Venezuela Iran Iraq Kuwait Brazil post Tupi UAE Russia Libya Kazakhstan Nigeria Canada US Qatar China Angola Brazil BrazilTurkmenistan Iran Kazakhstan China Russia Australia Kuwait Israel SaudiArabiaIndia Indonesia Venezuela Papua NewGuineaGhana Licensed 4% Unlicensed 96% Source: ANP Oil & gas in the world Oil and Gas Discovered Volumes 2000 – 2010 (Bn boe) Oil Resources- December 2009 (Bn bbl) Source: EIA-DOE, BP Statistical Review of World Energy 2010, Saudi Aramco, UPPSALA University, Petrobras, ANP and OGX analysis Source: IHS Source: BP Statistical Review of World Energy 2010 & analyst estimates BRAZIL’S HISTORICAL UNDER-EXPLORATION UNDERPINS MASSIVE GROWTH OPPORTUNITIES FOR OGX
15. OGX’s Portfolio 34 blocks: 29 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 3 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 Portfolio Shallowwater ~120m Shallowwater ~150m Deepwater ~1,000m Shallowwater ~60m 12
16. Campos Basin: Low Risk, Shallow Water and Large Volumes Campos Basin 5.7 bn bbl of net 3C, net delineation and net mean risked prospective resources, evaluated by D&M (pre-salt not included) 5 blocks operated by OGX (100% owned) and 2 operated by Maersk Oil (50% owned) Total area of 1,177 km2 Average water depth of ~120m 41 wells drilled 100% success rate OGX’s Discovered Accumulations confirm a new HYDROCARBON province in the southern Campos Basin 13
17. 14 Santos Basin: High Potential Santos Basin 1.8 bnboe of net risked prospective resources (POS of 27%), evaluated by D&M 5 blocks operated by OGX (100% owned) Total area of 820 km² Average water depth of ~150 m 9 wells drilled ~ 65% success rate SANTOS BASIN IS ONE OF THE MOST PROMISING EXPLORATORY AREAS IN BRAZIL, WITH SIGNIFICANT POTENTIAL FOR GAS AND LIGHT OIL
18. NEW FRONTIER BASIN WITH HIGH POTENTIAL FOR GAS PRODUCTION Parnaíba Basin: Major Gas Province Parnaíba basin 15 1.0 bn boe of net risked mean prospective resources POS (17%) and net 3C, evaluated by D&M 7 blocks operated by OGX (47% owned) Total area of 21,500 km² Monetization of gas through thermoelectric plants to be developed by MPX/Petra (1,863 MW already licensed) 100% success rate (7 wells drilled) Commerciality declared for 2 accumulations
19. 16 Pará Maranhão Basin: PromisingNewFrontier Pará-Maranhão Basin 447 mnboe of net mean risked prospective resources (POS of 21%), evaluated by D&M 5 blocks operated by OGX (100% owned) Total area of 960 km² Average water depth of ~60m 1st well to be drilled in 2H11 NEW FRONTIER WITH GEOLOGICAL MODEL SIMILAR TO WEST AFRICA, WHERE SIGNIFICANT DISCOVERIES WERE MADE RECENTLY
20. 17 Espírito Santo Basin: New Frontier in Deep Water Espírito Santo Basin 817 mnboe of net mean risked prospective resources (POS of 33%), evaluated by D&M 5 blocks operated by Perenco (50% owned) Total area of 3,620 km² Average water depth of ~1,000 m 1st well to be drilled in 2H11 THE NEW FRONTIER OF ESPÍRITO SANTO HAS PROVEN TO BE A VERY ACTIVE PETROLIFIC SYSTEM
21. 18 Colombia: Cesar-Ranchería, Middle and Lower Magdalena Valleys: Great Upside Potential Colombian Basins 1.1 bnboe of net prospective resources and net potential petroleum quantities, evaluated by D&M 5 blocks operated by OGX (100% owned), 3 of which are located close to Maracaibo Basin (~80 bnboe discovered and ~50 bnboe already produced) Beginning of the Seismic Campaign in 2H11 MARACAIBO BASIN 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
22. OGX Portfolio Potential: Breakdown Portfolio Breakdown 19% Onshore 73% Shallow Water 8% Deep Water 21% Gas 79% Oil Note: “POS “ defined as geological probability of success (1) The OGX portfolio potential was calculated by OGX based on volume estimates contained in the DeGolyer and MacNaughton Reports (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 (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 (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 (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 OILDISCOVERIES OF 4.1 BN BBL ARE ALREADY UNDER PRODUCTION DEVELOPMENT IN THE SHALLOW WATERS OF CAMPOS BASIN 19
27. Campos Exploratory Drilling Strategy and Results Drilling Strategy Drilling Results 1st phase strategy (from Mar/08 to Dec/10) Seismic campaign to better image the areas and reduce risks Discover the maximum amount of oil 19 wells drilled 1 2nd phase strategy (from Dec/10 to Mar/13) 18 wells drilled 2 Focus on the appraisal drilling campaign to delineate existing discoveries Continue exploratory program with drilling of wildcat wells Begin production in October 2011 Drilling of 37 wells with hydrocarbons OGX analysis supports recoverable resources of 4.1 billion barrels Oil columns of up to ~250 meters Net pay up to ~150 meters Well results confirm OGX’s geological models for the Campos Basin DSTs (drill stem tests) support conservative production estimate of 10 – 20 kbpd One of the best DSTs ever performed in Brazil, with a production potential of 40,000 barrels per day OGX production estimates are supported by results from other fields in Campos using current technology Notes:1 Number of wells concluded in 2010 and included in D&M’s reports2 Number of wells concluded in 2011 24
29. 26 Campos Basin: Development Business Plan Initial Projects Campos Basin Development Plan Project 2Waikiki Complex 1st oil date: 4Q13 4.1 bnbbl Shallow waters Average production per well 10 – 20 kbpd 12 FPSOs and 11 WHPs 5 FPSOs and 2 WHPs already secured Average field life Capex US$ 2/bbl Opex <US$ 16/bbl 22 development wells 14 production 8 injection 1 FPSO and 1 WHP OSX-3 and WHP-2 Oil of 23° - 28° API Water depth: 120m Average production per well 15 – 20 kbpd Project 1 Waimea Complex 1st oil date: October 2011 42 development wells 28 production 14 injection 3 FPSOs and 2 WHPs OSX-1, OSX-2 and WHP-1 Oil of 20° API Water depth: 140m Average production per well 10 – 20 kbpd Illustrative
30. Campos Basin: OGX-26 - First Production Well OGX will begin production by Oct/11 with an extended well test (EWT) in the Waimea accumulation (OGX-26) producing up to 20,000 barrels per day OGX-26 is located in the shallow waters in the Campos Basin (134m) and 84 km off the coast One of the best drill-stem tests ever performed in Brazil, which confirmed an excellent productivity index (PI) of 100 m3/day/kgf/cm2 Production potential of 40,000 barrels per day in definitive development phase Oil gravity of 20⁰ API State-of-the-art drilling technology: 1,000 meters of horizontal extension Production concept for this well utilizes off-the-shelf technology Confirms high productivity in the Campos carbonates 1,000 m THE RESULTS OBTAINED IN THE DRILLING OF THIS WELL VALIDATE THE GEOLOGICAL MODEL AND CONFIRM THE RELEVANCE OF THE CARBONATE PROVINCE DISCOVERED BY OGX IN THE SOUTHERN PART OF THE CAMPOS BASIN 27
31. Campos Basin: OGX-26 Defined Production Concept Production concept Horizontal Well (OGX-26) already drilled and successfully tested Well completed and wet christmas tree installed Buoy anchor system and flexible lines already delivered Extended Well Test (EWT) approved by ANP (National Petroleum Agency) FPSO (OSX-1) arrival expected by mid-2011 All critical equipment and services already secured Two additional horizontal production wells to be connected in 2012 OSX - 1 EWT WILL HAVE A WET CHRISTMAS TREE AND FLEXIBLE LINES DIRECTLY CONNECTED TO THE FPSO OSX‐1 AND AN OIL FLOW RATE OF UP TO 20,000 BARRELS PER DAY 28
32. Campos Basin: Equipment Secured FPSO OSX-1 Wet Christmas Tree Flexible Lines 29 Critical equipment and services status Main equipment in place Equipment Wet Christmas Tree (WCT): Already installed Umbilical Terminal Assembly (UTA): Contracted Hydraulic Power Unit (HPU): Delivered in April, 2011 Flexible Lines: Contracted with Wellstream Electrical Submersible Pump (ESP): Contracted with Baker 80 kbpd of processing capacity & 950,000 barrels of storage capacity Expected arrival: Mid 2011 Already installed Produced by GE Oil & Gas Services Installation Vessel – Anchor System, Flexible Lines and Umbilicals: Contracted with WS and Aker Mud line and Subsurface analysis for FPSO mooring and WHP piles: Contracted with FUGRO – already completed Waimea Area Survey: Contracted with FUGRO Already manufactured Produced by Wellstream Aker Wayfarer Vessel Contracted with Aker
33. Campos Basin: Replicable Development Concept Operational Expenditures (Leased Equipment) WHPCapacity: 30 wellsDrilling package ontopside Opex <US$ 16/bbl FPSOOil capacity: 100 K bpd Liquid capacity: 160 K bpd Oil will be offloaded WHP Subsea Flow Lines Power line Gas Lift line Service line Water Injection line Production line Test line Capex US$ 2/bbl Drilling + Completion Development wells with dry completion Gaswillbereinjected, used for gasliftorpowergeneration WaterInjection Capital Expenditures Note: Please see details in the Appendix slide: “Campos Basin: Typical Production Project” 30
34. FPSOs and WHPs Expected Deliveries WHPs FPSOs Unit 2011 … 2013 2014 2015 2016 Unit 2013 2014 2014 Waimea OSX-1 WHP-1 Waimea 3rd Q 1st Q Waimea OSX-2 2nd Q WHP-2 Waikiki 2nd Q Waikiki OSX-3 3rd Q WHP-3 3rd Q OSX-4 2nd Q WHP-4 4th Q OSX-5 4th Q WHP-5 4th Q OSX-6 4th Q WHP-6 4th Q OSX-7 4th Q WHP-7 1st Q OSX-8 1st Q WHP-8 2nd Q OSX-9 3rd Q WHP-9 3rd Q OSX-10 4th Q WHP-10 4th Q OSX-11 1st Q WHP-11 OSX-12 4th Q 1st Q OSX-1 to be delivered in August 2011 OSX-2 and OSX-3 to be built in world-class Singaporean shipyards by SBM and Modec OSX-4 and OSX-5 hulls already acquired by OSX WHP-1 and WHP-2 with detailed engineering ongoing (EPC awarded to Techint by OSX) Production equipment allocated to begin operations until 2013 31
35. Secured Production Equipment WHPs FPSOs OSX-1: Production capacity of 80 kbpd and storage of 950 kbbl Average Day rate of US$ 263 k Arrival expected to Aug/11 OSX-2: Production capacity of 100 kbpd and storage of 1.3 Mbbl Expected Average day rate of US$ 290 k EPCI contract executed by OSX and SBM OSX-3: Production capacity of 100 kbpd and storage of 1.3 Mbbl Expected Average day rate of US$ 290 k LOI already signed by OSX with MODEC WHP-1: Capacity to drill up to 30 wells Four production wells on-stream by the end of 2013 Detailed engineering ongoing (EPC awarded to Techint by OSX) Two sister VLCC´s (Very Large Crude Oil Carriers) purchased on November, 2010 by OSX to be converted into FPSOs WHP-2: Capacity to drill up to 30 wells Three production wells on-stream by the end of 2013 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 32
36. OGX Strategy to Expedite Production Pre-Drilling Strategy Available Drilling Resources Expedite drilling process and accelerate production ramp-up OGX plans to drill on average five horizontal wells prior to the arrival of the WHPs from semi-submersible rigs Upon arrival of each WHP, pre-drilled wells should ramp-up plateau production in approximately three quarters Ocean Lexington (Diamond): Daily Rate: US$ 335k Max. well depth: 20,000 ft Contract Expires: Feb.2013 (+ one optional year) Ocean Ambassador (Diamond): Daily Rate: US$ 260k Max. well depth: 20,000 ft Contract Expires: Sep.2012 (+ one optional year) Flex FPSOs Given the significant number of discoveries and their similarities, OGX has the benefit of accelerating the procurement process through the use of Flex FPSOs Flex FPSOs have capacity of processing oil for a broader range of APIs and GOR (gas/oil ratio) Standard design (same characteristics for all FPSOs) Capitalizes on economies of scale Ocean Quest (Diamond): Daily Rate: US$ 270k Max. well depth: 25,000 ft Contract expires: Dec.2012 (+ one optional year) Ocean Star (Diamond): Daily Rate: US$ 310k Max. well depth: 25,000 ft Contract Expires: Feb.2013 (+ one optional year) Sea Explorer (Pride): Daily Rate: US$ 265k Max. well depth : 20,000 ft Contract Expires: Nov.2011 (+ two optional years) Pride Venezuela (Pride): Daily Rate: US$ 265k Max. well depth: 20,000 ft Contract Expires: Nov.2011 33
37. Campos Basin: Oil Production Ramp-Up 34 150 CAGR : 174% Oil Production Target (kbpd) ¹ 50 20 2011 2012 2013 Note: 1 To be reached through the end of the period
38. 35 Parnaíba Basin: Development Business Plan ParnaíbaDevelopment 2 fields (GaviãoReal & GaviãoAzul) 1 production complex Declaration of commerciality of two fields already submitted to ANP Initial production expected in 2H12 Low capital and operating costs Total Capex of approximately of US$ 450 M for production of 5.7 M m³per day in 2013 (2.7 M m³per day net to OGX S.A. or ~15 kboepd) Low operating field life cost of less than US$ 0.30/1,000 ft³ on average Gas to be sold to MPX power plants Energy generated by MPX’s power plants will be sold to the energy markets Project 1 1stgas: 2H12 23 production wells OGX-46D Illustrative
39. 36 Parnaíba Basin: Project Development Parnaíba Development Schematic Gas Thermal Power Plant Development OGX Maranhão (70%) + Petra (30%) investments MPX + Petra investments A site to construct a power plant in the PN-T-68 block has already been acquired by MPX 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 Capex field life Total drilling cost: US$ 340 M (includes re-completion cost) Total facilities1 cost: US$ 110M Gas Thermal Power Plant Production Facility for Dry Gas Opex field life 2 Less than US$ 0.30/1,000 cubic feet Short Gas Pipeline(<2 km) Lines Manifolds Transmission Lines Wells Gathering System 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
40. 37 Production Targets OGX Production Targets OGX Offshore Equipment Demand 19 units 12 units for Campos Basin discoveries In kboepd FPSO 1,380 CAGR : 70% 24 units 11 units for Campos Basin discoveries WHP Campos and Parnaíba discoveries development 730 5 units expected to be used in the Espírito Santo Basin (the only deep water blocks in OGX’s portfolio) CAGR : 174% 165 TLWP 50 20 Long-lead offshore production items already secured (OSX-1, OSX-2 and OSX-3; WHP-1 and WHP-2) Portfolio potential of 10.8 bn of recoverable boe: >10 years of production growth Campos and Parnaíbadiscoveries (4.2 bnboe) can support 730,000 boepd of production level Additional potential resources (6.6 bnboe) would allow OGX to reach and sustain a plateau of 1.4 million boepd from 2019 and beyond Expected demand of 48 offshore units Total of 23 units estimated for OGX’s Campos Basin discoveries (12 FPSOs and 11 WHPs) Strategy to expedite development with production equipment contracted 2-3 years in advance
42. OGX Financial Sources and Uses (2Q11 – 4Q13) Financial Sources and Uses Cash Position of US$ 5.1 bn Financial Highlights 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 - $1.5 billion Current cash position of US$ 5.1 billion is sufficient to fund the development of Campos and Parnaíba discoveries until OGX reaches stable positive cash flow in 2014 Notes: 1 As of March 31, 2011 2 Includes net financial results 3 Represents 40% of Exploration capex (contemplating all OGX basins) and 60% of Development capex (contemplating Campos and Parnaíba discoveries only) 39
43. US$ 2.563 Billion Notes Offering Transaction Highlights Summary of Terms OGX raised US$ 2.563 billion in a bond issuance in May 26, 2011 Largest non-investment grade offering ever by an O&G company Final book of demand featured traditional HY investors that do not commonly invest in EM names After in-depth diligence by the main rating agencies Moody’s, Fitch and S&P, OGX was rated B1, B+ and B with positive outlook Investor Breakdown 40
48. Concluded Wells (3 of 3) 45 ¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator
49. Campos Basin: Typical Production Project 46 Typical Replicable Project Assumptions Campos Basin Distance from shore: 80 km Water depth: 100 to 150 meters Recoverable volume: 500 million bbl (low Gas:OilRatio (GOR)): all gas produced will be used for power generation or gas reinjection, if applicable Equipment oil producing capacity: 1 FPSO: 100 Kbblpd 1 WHP: 30 wells Drilled wells:16 horizontal production wells and 9 injection wells 5 horizontal production wells pre-drilled from semi-submersible rig 11 production and 9 injection wells drilled from WHP Capex:estimated unit cost of approximately US$ 2 / barrel Pre-drilled wells = US$ 50M (75 days per well) WHP drilled wells = US$ 20M (75 days per well) Well completion = US$ 15M (30 days per well) Package of sub-sea flow lines = US$ 65M Opex:estimated unit cost lower than US$ 16 / barrel Leased equipment day rates with high local content (FPSOs US$ 350k / day & WHPs US$ 160k /day) Operating and maintenance expenditures of US$ 85k / day Variable operating costs of US$ 3.5 / barrel Abandonment costs at end of field life of US$ 100M Production profile: Achieve production plateau in 3 quarters Plateau maintained for an additional 4 years 20 to 22 years of production decline from the plateau thereafter
