2. Disclaimer
This presentation is highly confidential and may not be reproduced or otherwise disseminated, in whole or in part, without the prior written consent
of OGX Petroleo e Gas Participacoes S.A. ("OGX"). This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any
securities in any jurisdiction where such offer or sale is not permitted. Securities may not be offered or sold in the U.S. unless they are registered
or exempt from registration under the U.S. Securities Act of 1933.
This presentation uses the term “prospective 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, the prospective
resources cannot be classified as contingent resources or reserves. Investors are advised that the U.S. Securities and Exchange Commission
(SEC) and other international securities regulators do not recognize prospective resources. Prospective resources have a great amount of
uncertainty as to their existence. There is no certainty that any portion of the 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 prospective
resources exist, or that they can be developed economically. Accordingly, information concerning prospective 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 Industry Guide 2 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. 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, you may lose all of your 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.
Various factors could cause OGX's actual future results, performance or events to differ materially from those described in this presentation. You
are urged to carefully review OGX's confidential 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.
2
4. 2008 Accomplishments
Signed concession contracts for 21 exploration blocks acquired in Ninth Bidding
Round of November 2007
Portfolio
Obtained approval of ANP to proceed with the farm-in agreement in BMS-29 in
the Santos basin, bringing the number of blocks in the portfolio to 22
Appraisal report provided by DeGolyer & MacNaughton (D&M) certified that OGX’s
D&M Report exploration blocks contain 4.8 barrels of oil equivalent (boe) of net risked
prospective resources, assuming an average success probability of 27%
OGX’s Initial Public Offering (IPO) of 5.93 million common shares on the
IPO Bovespa’s Novo Mercado raised R$6.7 billion, the largest amount ever raised
in a Brazilian IPO
Completed seismic data shooting in the Campos and Pará-Maranhão basins
Seismic
and construction of a state-of-the-art 3D visualization room for seismic data
Campaign
analysis
Chartered the four semi-submersible drilling rigs needed to execute entire
Equipment and exploratory drilling campaign in the Campos and Santos basins, and procured
Services Procurement
all essential equipment and services to begin initial campaign
4
5. Financial Highlights
Cash Position The total amount raised in the IPO, R$6.7 billion, is
(R$ million)
invested in fixed income instruments in accordance
7,601 with OGX’s conservative financial investment policy
Cumulative rate of return of 112,13% of the Interbank
2,338 Rate (CDI) in 2008
2007 2008
Net Profit Net profit primarily driven by financial income from
(R$ thousand)
cash investments
359,884
Exploration expenses of R$139.2 million (seismic,
block lease and partner chargers)
G&A of R$58.6 million (comp&bene, consultancy,
travel, office costs)
12,453
2007 and 2008 results reflect changes on Corporate
Law nº 11,638/2007
2007 2008
5
6. Balance Sheet – R$ thousand
Assets 12/31/2008 12/31/2007 Liabilities 12/31/2008 12/31/2007
Current 7,698,262 2,338,719 Current 580,103 2,059,194
Cash and cash equivalents 7,601,234 2,338,487 Suppliers 18,244 43,164
Recoverable taxes 38,862 - Taxes and contributions payable 1,938 362
Financial instruments - derivatives 54,800 - Payroll and related taxes 7,744 -
Other 3,366 232 Accounts payable on aquisition of
exploration blocks 552,174 2,015,565
Other 3 103
Noncurrent 2,049,670 2,023,146 Noncurrent 2,100 -
Property 12,066 7,581 Related parties 2,100 -
Intangible assets 2,037,604 2,015,565 Shareholder's equity 9,165,729 2,302,671
Capital 8,798,901 2,295,724
Revenue reserves 366,828 -
Retained earnings - 6,947
Total Asset 9,747,932 4,361,865 Total Liabilities 9,747,932 4,361,865
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7. Income Statement - R$ thousand
2008 2007
Operating income (expenses)
Exploration expenses (139,187) (1,193)
General and administrative (58,611) (17,866)
Provision for investment losses - (5,218)
Financial Revenues 791,287 51,728
Financial Expenses (37,061) (340)
Profit before income tax and social contribution 556,428 27,111
(-) Income tax and social contribution (196,544) (14,658)
Net profit for the exercise 359,884 12,453
-
Number of shares 32,319,606 2,019,285,714
Profit per lot of thousand shares - R$ 11,135.16 6.17
7
9. Seismic Program
Seismic Scope of Scheduled Seismic vs. Current Contracts
Company Services
Activity 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Saving
Survey
2,136 km² of new 3D 1
Campos Processing month
seismic
Interpretation
Survey n.a.
676 km² of “up-lift” payment
Santos + Reprocessing
½
special reprocessing
month
Interpretation
1,900 km² of new 3D Survey
seismic
Espírito 7
Proc./Reproc.
Santo 1,700 km of new 2D seismic months
+ special reprocessing
Interpretation
672 km² of new 3D Survey 1
seismic 1 3
Pará &
385 km² of existing 3D Proc./Reproc. 1 + 2 2 months
Maranhão
seismic + special
reprocessing 2 Interpretation 1 2
Time Saving Current schedule
Seismic program ahead of schedule and below budget
9
10. Exploration Drilling Campaign
Ocean Ambassador: SS ~1,000 ft Ocean Quest: SS ~3,500 ft
Arrival date: Sep. 2009 Arrival date: Oct. 2009
Max. well depth: 20,000 ft (10,000 psi) Max. well depth: 25,000 ft (15,000 psi)
Status: Contract signed Status: Contract signed
Contract period: 3 + 1 years Contract period: 2 + 1 year
Ocean Lexington: SS ~2,000 ft Sea Explorer: SS ~1,000 ft
Arrival date: Feb. 2010 Arrival date: Sep. 2009
Foto
Max. well depth: 20,000 ft (10,000 psi) Semi- Max. well depth: 20,000 ft (10,000 psi)
Status: Contract signed Submersible Status: Contract signed
Contract period: 3 + 1 years Contract period: 2 + 1 year
Rigs – 2009 Schedule June July August September October November December
Sea Explorer Campos 1 Campos 2
Ocean Ambassador Campos 3 Campos 4
Ocean Quest Santos 2
Ocean Lexington (1)
Other (2) BMS-29
(1) Rig arrival expected in 2010
(2) Maersk operator
Four rigs secured with world-class contractors to drill all operated blocks
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11. Campos & Santos - Logistics
Rio de Janeiro
Rio das Ostras
São Paulo Jacarepaguá
Cabo Frio
Air base Rio de Janeiro
Air base
Shore base
Equipment:
Platform Supply Vessel (PSV)
Fast Supply Vessel (FSV)
Quantity: 3
Quantity: 1
Contractor: Edison Chouest
Contractor: Edison Chouest
Anchor Handling Tug Supply
(AHTS) Mid Size Helicopter
Pax transportation (air) Quantity: 2 Quantity: 2
Cargo transportation (sea) Contractor: Edison Chouest/ Contractor: Aeróleo
Norskan
Six vessels and two helicopters chartered from world-class contractors to support
drilling rig operations in the Campos and Santos basins
11
12. Materials and Additional Services
Wellhead contracted for up to 51 wells
Remote Operated Vehicle – ROV*
Casing
Engineering Services
Drilling Fluid for all drilling rigs
Casing Services
Bits
All essential drilling materials, equipment and services secured
*Signed letter of intention
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14. Main 2009 events
April May June July August September October November December
Final 3D Seismic Drilling D&M Review
Campos BMS-29 well (Campos)
Drilling Final 3D Drilling Final 3D
Campos 1 well seismic PaMa Campos 3 well Seismic ES
Drilling Drilling Drilling
Campos 2 well Santos 2 well Campos 4 well
Main triggers for 2009: intense drilling campaign with six wells and an update of the
appraisal report
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