OGX reported positive second quarter 2010 results. Key highlights include: - Commenced drilling of 8 new exploratory wells across three basins in Brazil. - Filed environmental permits for production in the Campos Basin. - Acquired 5 new exploratory blocks in Colombia. - Reported a net profit of R$57.8 million for the quarter, compared to a net loss in the prior year, driven by lower financial expenses. - Maintained a strong cash position of R$6.1 billion to fund ongoing exploration commitments.

1. 2010 Second Quarter Results

2. Second Quarter Highlights and Subsequent Events
Commenced drilling of eight wells in the Campos, Santos and Parnaíba basins, OGX‐11D
Exploratory to OGX‐18;
Campaign  New discoveries and commencement of the delineation process in the Campos Basin
 Beginning of drilling activities in three new regions: northern blocks of the Campos Basin,
Santos and Parnaíba Basins
Filed the Environmental Impact Study (EIA) and the respective Report of Environmental
Impact (RIMA) for the Campos Basin with the Brazilian Institute for Environment and
Production
Renewable Resources (IBAMA) in order to obtain a preliminary license for hydrocarbon
production activity
A iii f fi l bl k i h h b i i C l bi C
Acquisition of five exploratory blocks in three onshore basins in Colombia: Cesar‐
Portfolio Ranchería, Lower Magdalena Valley and Middle Magdalena Valley Basins;
Initiated the process for the sale of a minority participation in the Campos Basin’s blocks
Adopted IFRS as accounting standard
Joined the Efficient Carbon Index (“ICO2”), an index composed of companies included in
Stock Market
Stock Market
the IBrX‐50 Index, which tracks the efficiency level of member companies’ emissions of
greenhouse gases;
2

3. Financial Results

4. 2Q10 Financial Results
Adoption of the International Financial Reporting Main Accounts
Standards (IFRS)
Standards (IFRS) 2Q10 2Q09 1H10
R$ thousand
Net Financial Results: impacted by interest income, losses Net Financial Result 135,547 (107,357) 285,370
on hedging and the impact of marking‐to‐market the fair Financial Income 151,292 208,017 586,935
Financial Expenses
Fi i lE (15,745)
(15 745) (315,374)
(315 374) (301,565)
(301 565)
value of financial instruments
Exploration Expenses (25,252) (12,594) (48,666)
Exploration Expenses: refer, mainly, to expenses related to G&A Expenses (57,120) (52,896) (121,655)
G&A (32,757) (24,187) (73,063)
seismic activities
seismic activities
Stock option plans¹ (24,363) (28,709) (48,592)
Tax (5,346) (4,681) (10,393)
General and Administrative Expenses: increase in the
Minority Interest 9,960
‐ 10,021
number of employees to 184, resulting in greater
Net Result 57,789 (177,528) 114,677
personnel and office expenses, and accounting of the stock
(1) Related to the adoption of IFRS
options granted by the Company and by the controlling
shareholder
Net Profit: increase from the 2Q09 mainly due to decrease 06/30/2010 12/31/2009 Δ
R$ thousand
in financial expenses
Intangible 3,159,413
3 159 413 2,099,559
2 099 559 1,059,854
1 059 854
Intangibles: intensified drilling campaign and rig Cash and cash equivalents 6,110,919 7,337,901 (1,226,982)
mobilization used in the exploratory campaign
4

5. 2Q10 Financial Results
Cash Position Evolution Allocation by Institution
Solid cash position of R$6.1 billion, or US$3.4 billion, Average cumulative gross return equivalent to 105 05% of
105.05%
enough to support all the exploratory commitments until the Interbank Deposit Rate (CDI), generating R$ 145 million
2013, and the beginning of production of interest income for the period
Cash invested in fixed income instruments with some of the
Foreign exchange hedge position of US$ 1.6 billion,
most solid financial institutions in Brazil
representing approximately 15 months of financial
commitments denominated in US$
$
BTG Pactual,
R$ billion US$ billion 8.4%
7.0 4.5 Votorantim, Safra, 2.2%
12.2% ABC, 2.1%
4.0 Santander,
Société, 2.1%
6.5 16.7%
3.5
Others, 5.2%
6.0 Bradesco,
3.0 18.5% Itau Unibanco,
32.8%
5.5 2.5
1Q10 Apr May Jun
Cash in R$ Cash in US$
* CS (1.7%), HSBC (1.4%), BNP (0.7%), LFT (1.4%) Fundos (0.1%)
5

6. Insurance Program
Offshore Program
OGX secured improved terms in its insurance program for future upstream operations;
Company carried out a mid-term review of its insurance program resulting in US$ 1.5 million estimated
savings for the next 12 months;
Contracted Policies:
 Well Control: Limit of US$ 125M in Campos basin, and US$ 250M in Santos with deductibles of US$
10M and US$ 15M, respectively;
15M
 Third Party Liabilities (TPL): Limit of US$ 100M per occurrence with deductible of US$ 1M;
 Property: Total Limit of US$ 30M per occurrence with deductible of US$ 250k.
Onshore Program
Insured limits per occurrence: Well Control (US$ 60M) and TPL (US$ 25M) with deductibles of US$ 5M and
US$ 100k, respectively
These favorable terms reflect the recognition by the market of an exploratory
campaign highly focused on operational excellence and safety

7. Exploratory Campaign

8. Important Progress in the Exploratory Campaign
Campos Santos Parnaíba
Concluded drilling activities in 12 wells operated by OGX‐1 OGX‐2A
OGX and 1 operated by Maersk since our
OGX‐3 OGX‐4 MRK‐2A
exploratory campaign inception
cluded
OGX‐5 OGX‐6 OGX‐12
Initiated drilling activities in three new regions:
Conc
OGX‐8 OGX‐9DB
northern blocks of the Campos Basin, Santos and
OGX‐10 OGX‐13
Parnaíba Basins, of which the first two were already
successful and the third is still in progress OGX‐14
OGX 14
Six rigs operating simultaneously, of which five are OGX‐15 OGX‐18 OGX‐11D OGX‐16
semi-submersible and one is onshore
Secured two new drilling units: one semi-
Ocean Ocean
ogress
submersible, which will be available from the third Ambassador Lexington
Ocean Quest QG-1
quarter and one jack-up, for drilling activities in the
jack up In pro
OGX‐7A OGX‐17
Pará-Maranhão Basin
Sea Ocean Star
Explorer
8

9. Campos Basin
Campos ‐ North
Two drilled wells, with discoveries in the BM‐C‐40 block, one
already concluded (OGX‐14) and the other one in progress (OGX‐
18), that could indicate a new province of great importance
Campos ‐ South
Conclusion of drilling of the OGX‐9DB and OGX‐13 wells,
Conclusion of drilling of the OGX 9DB and OGX 13 wells,
representing an important step in the delineation process of the
Vesúvio prospect, confirming the presence of oil bearing sands in
both wells
both wells
Hydrocarbon evidence in the Albian and Aptian sections of the OGX‐
15 well (Santa Helena), strengthening the possibility that the
accumulation encountered in the Albian section is connected to the
structure formed between the OGX‐2A (Pipeline) and OGX‐6 (Etna)
9

10. Santos and Parnaíba Basins
Santos Basin
Two wells in progress: OGX 11D (Natal) and OGX 17 (Belém)
Two wells in progress: OGX‐11D (Natal) and OGX‐17 (Belém)
Identification of liquid hydrocarbons and associated gas with API of
approximately 41° in the Santonian section of the OGX‐11D, hightening
the attractiveness of the project
Concluded the drilling of the Niterói prospect (OGX‐12) with non‐
commercial volume. The result was of great relevance for the
commercial volume The result was of great relevance for the
calibration of the geological model for the region
Parnaíba Basin
Initiation of drilling activities for the first onshore well by OGX Maranhão
Beginning of drilling activities of the OGX‐16 well, Califórnia, on July 5th
which is expected to last 70 days
OGX Maranhão P ól i
OGX M hã Petróleo is a special purpose vehicle (SPE) formed by
i l hi l (SPE) f db
OGX (66.6%) and MPX (33.3%)
10

11. Expansion of Exploration Beyond Brazil’s Borders :
Colombia
Cesar‐Ranchería:
Acquisition of five exploratory blocks in three three high potential
onshore basins during the Open Round
onshore basins d ring the Open Ro nd blocks, close to the
blocks close to the
Maracaibo basin
Colombia 2010
Basins at different stages of maturity with high
g y g Lower Magdalena Valley:
basin in initial phase of
b l h f
exploratory potential exploration with
producing fields
Total area of approximately 12.5 thousand km²
Total investment of approximately US$125
million over an initial three‐year exploratory
phase
Middle Magdalena Valley:
mature basin where a giant
Colombian field is located:
La Cira‐Infantas
11

12. Appendix

13. Consolidated Balance Sheet – R$´000
In accordance with IFRS
Assets 6/30/2010 12/31/2009 Liabilities 6/30/2010 12/31/2009
Current Assets
6,363,892
7,564,268 Current Liabilities
424,495
581,406
Cash and cash equivalents 6,110,919
7,337,901 Suppliers
370,769
151,262
Taxes and contributions to be
Recoverable taxes 226,052 209,076 collected 14,345
40,116
Financial derivative instruments ‐ ‐ Compensations & benefits 15,264 23,960
Other 26,921
17,291 Financial derivative instruments 8,221 300,757
Other 15,896
65,311
Non‐current Assets
3,411,580
2,205,830 Non‐current Liabilities
(1,150)
2,402
Inventory
230,567
85,354 Related parties 4,670 2,402
Investments ‐
1,000 Minoritory interest (5,820)
‐
Property, plant and equipment
Property plant and equipment 21 600
21,600 19 917
19,917
Intangible 3,159,413
2,099,559 Shareholders' Equity
9,352,127 0
9,186,290
Capital 8,801,480
8,799,004
Capital reserves
227,315 250,569
Retained earnings
320,026 248,171
Cumulative conversion adjustments
C l i i dj 83
‐
Accumulated profit (losses) 3,223
(111,454)
Total Liabilities and Shareholders'
Total Assets
9,775,472
9,770,098
9,775,472
9,770,098
Equity
13

14. Consolidated Income Statement – R$´000
In accordance with IFRS
2Q10 2Q09 1H10
Operating income (expenses)
Exploration expenses
(25,252)
(12,594)
(48,666)
General and administrative expenses
(57,120)
(52,896)
(121,655)
Equity Method
‐
‐
‐
Financial income
Financial income 151 292
151,292 208 017
208,017 586 935
586,935
Financial expenses
(15,745)
(315,374)
(301,565)
Net earnings (losses) before income tax and
115,049
social contribution
53,175 (172,847)
()
(‐) Income tax and social contribution (5,346) (4,681)
( , ) ( , ) (10,393)
( , )
Net earnings (losses) before Minority Interest
47,829
(177,528)
104,656
Minority Interest
9,960
‐
10,021
Net earnings (losses) for the period
57,789
(177,528) 114,677
Number of shares at the end of the period *
Number of shares at the end of the period * 3,232,423,600
3 232 423 600 32 319 606 3 232 423 600
32,319,606 3,232,423,600
Earning (losses) per lot of thousand shares ‐ R$
0.02
(5.49)
0.03548
14