OGX – First Quarter 2012 Results

RIO DE JANEIRO--(BUSINESS WIRE)--OGX Petróleo e Gás Participações S.A. (Bovespa: OGXP3) announces today its results for the first quarter of the 2012 fiscal year. The financial and operational data below is presented on a consolidated basis, in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board - IASB and, in reais (R$), except where otherwise indicated.

“This quarter was extremely important for OGX, as we began production in the Campos Basin, made our first shipment to Shell and announced significant discoveries in the Campos and Santos basins, ” said Paulo Mendonça, CEO of OGX. “In addition, we made significant advances in our business plan which included an order for two new WHPs, the declarations of commerciality of the Waikiki accumulation and of a portion of the Waimea Complex, to be named the Tubarão Martelo Field and Tubarão Azul Field, respectively, and secured additional funding that solidified our cash position,” added Mr. Mendonça.

First quarter highlights and subsequent events:

• Initiation of production in record time at the Waimea accumulation on January 31, 2012
• Average daily production in the quarter of 11.0 kboepd
• High operational efficiency of 97% at the production plant and excellent efficiency of equipment including the OGX-26HP well
• Delivery of the first shipment of oil produced in Waimea to Shell, marking the beginning of cash generation for OGX
• Declaration of commerciality of the Waikiki accumulation and submission to the National Petroleum Agency (ANP) of the Development Plan for this area, with total estimated recoverable volume of 285 million barrels of oil and the proposed naming of the accumulation the Tubarão Martelo Field
• Declaration of commerciality of a portion of the Waimea Complex, for which the proposed naming is Tubarão Azul Field, with total estimated recoverable volume of 110 million barrels of oil
• Discovery of hydrocarbons in a pre-salt microbialite reservoir in the shallow waters of the Santos Basin (wildcat well OGX-63, known as Fortaleza)
• Drilling and drill-stem test for fluid identification at the first appraisal well of the Natal accumulation, OGX-74, in the Santos Basin, confirming the presence of light oil of 38° API
• An important discovery in the BM-C-39 block, in the Itacoatiara accumulation, in the Campos Basin, which, because of its location, will extend the Waikiki complex
• Drilling of 17 wells, including wildcat, appraisal and production wells in the Campos, Santos, Parnaíba and Espírito Santo basins
• Acquisition of a 20% stake from Maersk in blocks BM-C-37 and BM-C-38 in the Campos Basin and assuming the operation of these blocks
• Issuance of Senior Unsecured Notes with a ten year term for US$1.063 billion
• Secured R$600 million bridge loan through OGX Maranhão for the development of the Gavião Real and Gavião Azul fields in the Parnaíba Basin
• Placed order with OSX for the construction and shipment of WHPs 3 and 4

Campos Basin

In this quarter, we began production through an Extended Well Test (EWT) at the Waimea accumulation, which confirmed the high productivity of the reservoir. We also continued the appraisal of several accumulations and drilled wildcat wells. These activities are reflective of how OGX has evolved as a company, with simultaneous operations in exploration and production.

Waimea Production

Performance:

Waimea’s EWT, which showed flow rate variations at well OGX-26HP, confirmed the reservoir’s excellent productivity, as well as the strong performance of the artificial elevation equipment and the plant in general. In addition, the EWT provided important information on the reservoir that was critical in establishing the optimum production flow rate without injecting water into the reservoir.

In February and March, we achieved average daily production levels of 11.6 kboepd and 10.4 kboepd, respectively, with an average operational efficiency of 97% at the production plant, which will help us to better develop future projects.

First shipment to Shell:

At the end of March, we delivered the first Waimea oil shipment of 1.2 million barrels as part of our sale to Shell. The first shipment, sold at the average Brent price less US$5.50 per barrel, marks the beginning of our cash generation and represents an important step for OGX in its evolution as an important global E&P player. We will continue to analyze the most attractive opportunities for the commercial sale of our oil and plan to announce new partnerships soon.

EWT Economics:

With the sale of our first oil produced at Waimea, we obtained gross revenue of R$118.0 million and EBITDA of R$56.4 million, reflecting the potential of Waimea, which is already profitable with just one well in production. As new wells come on stream throughout the year, we expect to take advantage of economies of scale that will lower our costs per barrel, given that the majority of our costs are fixed, such as logistics, leasing, and operation & maintenance.

The chart below shows the managerial EBITDA reconciliation:

	Sale of 1st Cargo
Extended Well Test
1st cargo (offloaded on 03/28/12) - in barrels (bbls)	547,376
	R$ ('000)
Gross Revenue^1	118,003
Sales taxes	-
Royalties	(10,687)
Leasing	(24,078)
OSX Services	(13,944)
Logistics	(12,005)
Others	(871)
EBITDA	56,418
% EBITDA / Gross Revenue	47.81
EBITDA / barrel - (R$/barrel)	103.07

Note:

1 During the EWT, gross sales revenue, net of costs, is registered as a reduction of CAPEX (Intangible) and not income for the period

Declarations of Commerciality:

On April 25, we presented to ANP a Declaration of Commerciality for the Waikiki accumulation in blocks BM-C-39 and BM-C-40 in the shallow waters of the Campos Basin. The Development Plan (DP) was submitted to ANP and is currently under analysis. The new proposed name for the accumulation is Tubarão Martelo Field and OGX estimates a total recoverable volume of 285 million barrels of oil from this field throughout the production phase of the concession period.

The Waikiki accumulation was discovered through wildcat well OGX-25 in December of 2010 and production is expected to begin in the second half of 2013. The Waikiki Complex production plan, which includes the Tubarão Martelo Field, involves the FPSO OSX-3 and WHP-2 production units which are currently under construction by Modec and Techint, respectively.

In addition, we have presented to ANP the Declaration of Commerciality of a portion of the Waimea Complex, for which the new proposed name is Tubarão Azul Field. OGX estimates a total recoverable volume of 110 million barrels of oil from this field throughout the production phase of the concession period. Following the presentation of the Declaration of Commerciality, we will submit the field’s Development Plan.

With the declaration of commerciality, we will open the second well, which has already been drilled and connected to the FPSO OSX-1. Subsequently, we will connect the third and a fourth production well in order to increase production levels.

The Declarations of Commerciality for Waikiki and a portion of the Waimea Complex mark the beginning of OGX’s declaration phase in the Campos Basin, which, after a successful exploration and appraisal campaign, is now moving towards the production stage.

Exploration Campaign

We continued to focus on our exploratory campaign in the basin, both appraising accumulations and drilling new prospects, maintaining our 90% plus success rate.

This year, we also confirmed the existence of another important accumulation in this basin, Itacoatiara, which was discovered through wildcat well OGX-79, and together with the Waikiki, Peró and Ingá accumulations, will be part of the Waikiki complex.

Throughout the year, we intend to expedite the exploration campaign in the BM-C-37 and BM-C-38 blocks, where we recently increased our stake and became the operator, in order to determine the boundaries of the accumulations and verify the existence of additional potential prospects in these blocks. By the end of the exploration period, we expect to drill 6 more wells in these blocks, both wildcat and appraisal.

Below we highlight significant results for the first quarter:

Waimea: We concluded the drilling of well OGX-65D, where we identified 97 meters of net pay in the Albian section, and the drilling of OGX-68HP, a horizontal well extending more than 1,000 meters in the Albian section.

Pipeline: We concluded the drilling of well OGX-70, where we tested the limits of the structure. However, we found a sealed reservoir without hydrocarbons. We also concluded the drilling of OGX-72, an appraisal well where an excellent hydrocarbon zone with 129 meters of net pay was found in the Albian section. In addition, we have concluded the drilling of well OGX-80, another appraisal well in this accumulation where we found 51 meters of net pay in the Albian section.

Osorno: We concluded the drilling of OGX-73, an appraisal well in which we found 37 meters of net pay in the Albian section.

Tambora: We have drilled the first appraisal well in this accumulation, OGX-75, and encountered 49 meters of net pay in the Albian section. Additionally, we began drilling another appraisal well, OGX-81, which is still in progress.

Peró: We concluded the drilling of the first appraisal well in the accumulation, OGX-76, where we found 6 meters of net pay in the Albian section.

Ingá: We concluded the drilling of OGX-67 and OGX-71 appraisal wells, both without identification of hydrocarbons.

Honolulu: We began drilling the wildcat well in the Honolulu accumulation, OGX-78, which is still in progress.

Itacoatiara: We have concluded the drilling of the wildcat well at the Itacoatiara accumulation, OGX-79, in which we found 64 meters of net pay in the Albian section.

Below is a summary of the wells, both finished and in progress, in the Campos Basin:

WELLS CONCLUDED IN 1Q12
WELL	BLOCK	PROSPECT	RIG	COAST DISTANCE	WATER DEPTH	NET PAY	DRILLING AREA¹
OGX-70	BM-C-41	Pipeline - 5	Ocean Lexington	80 km	123m	-	3C
OGX-60HP	BM-C-41	Waimea – 2D	ENSCO 5004	84 km	132m	Albian: >1,000m (horizontal section)	1C
OGX-67	BM-C-40	Ingá - 2	Ocean Ambassador	93 km	111m	-	3C
OGX-71	BM-C-40	Ingá - 3	Ocean Ambassador	93 km	112m	-	3C
OGX-73	BM-C-41	Osorno - 1	Ocean Ambassador	78 km	130m	Albian: 37m	N/A²
OGX-72	BM-C-41	Pipeline - 7	Ocean Lexington	78 km	130m	Albian: 129m	3C
OGX-68HP	BM-C-41	Waimea – 4HP	ENSCO 5004	83 km	135m	Albian: >1,000m (horizontal section)	1C
OGX-76	BM-C-40	Peró - 1	Ocean Lexington	96 km	103m	Albian: 6m	2C
OGX-75	BM-C-41	Tambora - 3	Ocean Ambassador	76 km	130m	Albian: 49m	N/A²
ONGOING WELLS
WELL	BLOCK	PROSPECT	RIG	COAST DISTANCE	WATER DEPTH	STATUS	DRILLING AREA¹
OGX-78	BM-C-43	Honolulu - 1	ENSCO 5002	99 km	320m	In progress since 03/25/12	N/A²
OGX-79	BM-C-39	Itacoatiara - 1	ENSCO 5004	89 km	102m	Albian: 64m	N/A²
OGX-80	BM-C-41	Pipeline – 6	Ocean Lexington	76 km	128m	Albian: 51m	N/A²
OGX-81	BM-C-41	Tambora - 2	Ocean Ambassador	87 km	139m	In progress since 04/24/12	N/A²

Note:

1 As compared to accumulations reported in the Dec/10 D&M report

2 Discovery after the Dec/10 D&M report of contingent resources

Parnaíba Basin

In early 2012, the Company began intensifying the drilling of development wells. Also in the quarter, the Company resumed the exploration campaign by drilling another wildcat well in the basin, Fazenda Axixá (OGX-77), which confirmed the petroleum producing system in this block with the discovery of 2 meters of net pay at the Devonian section. We are reprocessing the seismic data in the region so that we can, in the future, appraise the boundaries of this accumulation.

We currently have three exploratory onshore rigs operating in the basin, two of which are focused on the drilling of development wells. We also recently contracted two additional rigs from Tuscany Drilling for this basin that are expected to be operational in the first half of this year, one for completion and workover and the other for exploration.

Development of the Gavião Real and Gavião Azul fields:

We continued the drilling of development wells for the Gavião Real field and currently have already drilled 10 production wells (including exploratory wells OGX-22 and OGX-38, which will become production wells).

Construction in the region is advanced and on schedule, with part of the equipment having been delivered and pre-assembled off-site. Some operations are already in progress at the site, such as: (i) preparation for the Gas Treatment Unit (GTU) location; (ii) construction of gas pipelines connecting the production clusters (group of wells in a single location) to each other and the GTU; and (iii) construction of the production clusters including the positioning of the equipment and the bases where the connection from the wells to the manifolds will be made.

In the second half of this year, we intend to begin production in the basin with the commissioning of the GTU and the turbines at the MPX Parnaíba Thermoelectric Complex, a power project being developed by MPX Energia and Petra Energia S.A., both partners of OGX in this basin. Commercial production is expected to start already in January of 2013, along with the Power Purchase Agreement (PPA) and we expect that MPX will be prepared to provide energy to the system and may consume up to 6 million m³/day throughout 2013. Total contracted capacity of the MPX Parnaíba Complex has already reached 1,500 MW.

In order to meet the funding needs to develop the Gavião Real and Gavião Azul fields, including the drilling of wells and construction of the GTU, OGX Maranhão raised R$600 million through a bridge loan in January 2012 for the project.

Below is a summary of the wells, both finished and in progress, in the Parnaíba Basin:

WELLS CONCLUDED IN 1Q12
WELL	BLOCK	PROSPECT	RIG	COAST DISTANCE	WATER DEPTH	NET PAY	DRILLING AREA¹
GVR-3D	PN-T-68	Gavião Real	QG-1	Onshore Block		Development well	3C
GVR-2D	PN-T-68	Gavião Real	BCH-05	Onshore Block		Development well	3C
GVR-4D	PN-T-68	Gavião Real	QG-1	Onshore Block		Development well	3C
GVR-5D	PN-T-68	Gavião Real	BCH-05	Onshore Block		Development well	3C
GVR-6D	PN-T-68	Gavião Real	QG-1	Onshore Block		Development well	3C
ONGOING WELLS
WELL	BLOCK	PROSPECT	RIG	COAST DISTANCE	WATER DEPTH	STATUS	DRILLING AREA¹
OGX-77	PN-T-85	Fazenda Axixá - 1	BCH-05	Onshore Block		Devonian: 2m	N/A²
GVR-8D	PN-T-68	Gavião Real	BCH-12	Onshore Block		In progress since 03/27/2012	3C
GVR-7D	PN-T-68	Gavião Real	QG-1	Onshore Block		In progress since 04/13/2012	3C

Note:

1 As compared to the Dec/10 D&M report

2 Discovery after the Dec/10 D&M report of contingent resources

Santos Basin

During the first quarter, we achieved important results in the Santos Basin, such as the discovery of the Fortaleza accumulation (post- and pre-salt layers) through well OGX-63 and the confirmation of the presence of light oil in the Natal accumulation through the appraisal well OGX-74.

We have confirmed the presence of hydrocarbons in the Albian (post-salt) and Aptian (pre-salt) layers of the Fortaleza accumulation through well OGX-63, where we found: (i) an approximately 1,000-meter column in the Albian layer with 110 meters of net pay; and (ii) a 150-meter column in the Aptian layer which confirmed microbialite reservoirs at the pre-salt layer with hydrocarbons in the shallow waters of the Santos Basin.

The Company recently re-entered well OGX-63 with the Ocean Quest rig to obtain more information from the Albian section of this well and expect new information by mid-2012. Subsequently, we will drill an appraisal well in the Fortaleza accumulation with the Ocean Star rig in order to obtain more information from the pre-salt section and to appraise the accumulation at both the pre- and post-salt sections.

In the quarter, we also completed the drilling of the appraisal well OGX-47 in the Natal accumulation, where we found continuity of the sandstone reservoirs from the Santonian Age near our wildcat well for this accumulation (OGX-11D). In the drill-stem test for fluid identification at the well, we found 38º API light oil, while gas and condensate were identified in well OGX-11D. The OGX-74 well was drilled down to 4,439 meters and, together with wildcat wells OGX-11D and OGX-47, will be part of a Discovery Evaluation Plan (DEP) for the region.

These new discoveries are extremely important to OGX, as they reinforce our vision of intensifying the exploration campaign in the region and confirm our initial expectations regarding the significant potential of oil accumulation for our blocks in this basin.

Below is a summary of the wells, both finished and in progress, in the Santos Basin:

ONGOING WELLS
WELL	BLOCK	PROSPECT	RIG	COAST DISTANCE	WATER DEPTH	STATUS
OGX-74	BM-S-59	Natal - 1	Ocean Quest	115 km	196m	In progress since 02/09/12
OGX-63	BM-S-57	Fortaleza	Ocean Quest	102 km	155m	Albian: 110m Aptian: 150m(column)

Other basins

Espírito Santo Basin:

In this quarter, we finished drilling the first two wells, PERN-1 and PERN-2, together with Perenco, OGX’s partner in the basin. The first two wells were concluded under the Minimum Exploratory Program (PEM) commitments with ANP. While both wells provided important information on this part of the basin, no hydrocarbons were identified in either of the drilled prospects Moriche (PERN-1) and Guarapari (PERN-2). In the second half of 2012, we will resume drilling in this region in the southern blocks of our portfolio, where the expected oil system is similar to that of the remainder of the basin, unlike the system found in the northern blocks.

Below is a summary of the completed wells in the Espírito Santo Basin:

WELLS CONCLUDED IN 1Q12
WELL	BLOCK	PROSPECT	RIG	COAST DISTANCE	WATER DEPTH	NET PAY
PERN-2	BM-ES-38	Guarapari	Ocean Star	110 km	823m	-

Colombia:

In February, we began the exploration campaign in Colombia with the acquisition of seismic data from the Lower Magdalena Valley Basin in the VIM-5 block to identify prospects to be drilled during the exploration period. More than 300 people are involved in our operations in Colombia.

In the Cesar-Ranchería basin, we plan to begin drilling the first exploratory well in the CR-2 block in the second half of 2012.

Next Events

OGX has several important events planned for the coming months, including:

• Opening of the horizontal production wells in Waimea which will result in increased production levels
• Presentation of the Development Plan of the Tubarão Azul Field (a portion Waimea Complex) to ANP
• Continued drilling of appraisal wells in Parnaíba
• Commissioning of the GTU in the Parnaíba Basin
• Continuation of the exploration and delimiting campaigns in the Campos, Santos, Parnaíba and Espírito Santo basins
• Beginning of drilling at Cesar-Ranchería in Colombia
• Possible new ANP round in Brazil and participation in the ANH round in Colombia.

Financial Results

We closed 1Q12 with a net loss of R$144.8 million, reflecting the Company’s pre-operational status. This result is due to: (i) intensification of the exploration campaign with expenses amounting to R$109.1 million; (ii) general and administrative expenses including personnel expenses, in the amount of R$92.9 million; partially offset by (iii) the positive deferred income tax and social contribution of R$38.7 million; and (iv) a positive net financial result of R$18.5 million.

Financial Statement - R$ ('000)	1Q12	4Q11	Variance
Operating income (expenses)	(202,033)	(399,498)	197,465
Exploration Expenses	(109,143)	(300,673)	191,530
General and Administrative Expenses	(92,890)	(98,825)	5,935
Net Financial Result	18,559	(120,453)	139,012
Financial Income	418,114	1,082,338	(664,224)
Financial Loss	(399,555)	(1,202,791)	803,236
Profit (loss) before Income Tax and Social Contribution	(183,474)	(519,951)	336,477
Taxes	38,672	187,364	(148,692)
Net profit (loss) for the period	(144,802)	(332,587)	187,785
Interest of non controlling shareholders	(12,399)	(10,553)	(1,846)
Attributed to controlling shareholders' interest	(132,403)	(322,034)	189,631

Exploration Expenses

Exploration expenses fell R$191.5 million sequentially from 4Q11. This decline is explained by: (i) the R$216.6 million reduction in expenses relating to dry/sub-commercial wells and non-recoverable costs of R$236 million in 4Q11 to R$19.4 million in 1Q12; (ii) a R$25.1 million increase in expenses with geological and geophysical studies, seismic campaigns and other exploratory evaluations from R$64.4 million in 4Q11 to R$89.7 million in 1Q12.

General and Administrative Expenses

General and administrative expenses in 1Q12 were slightly lower than in 4Q11, falling R$5.9 million to R$92.9 million.

Net Financial Result

In 1Q12, the Company’s net financial revenue was R$18.5 million, compared to a net financial expense of R$120.5 million in 4Q11, for a positive variation of R$139.0 million. This variation is chiefly the result of the real’s appreciation against the dollar, which generated a positive variation of R$98.5 million with net income from foreign exchange of R$31.1 million in 1Q12, as opposed to the net loss of R$67.5 million in 4Q11.

Balance Sheet

We closed 1Q12 with a solid cash position of R$6.6 billion (US$3.6 billion), sufficient to leverage new investment opportunities (exploratory concession bids, farm ins, etc.) and finance our exploratory campaign and production development for the next several years.

Balance Sheet - Main Items - R$ ('000)	3/31/2012	12/31/2011	Variance
Cash *	6,619,170	5,458,780	1,160,390
Accounts receivable	118,003	-	118,003
Intangibles	8,775,153	7,685,507	1,089,646
Loans and Financing	(7,248,149)	(4,772,414)	(2,475,735)
*Cash and Cash Equivalents + Marketable Securities + Escrow Deposits

Cash

The consolidated cash balance totaled R$6.6 billion on March 31, 2012, which represented a R$1.2 billion increase over the previous quarter. This increase is due to the US$1.1 billion (equivalent to R$1.9 billion) issuance of Senior Unsecured Notes by OGX Austria in March of 2012 and to the R$600 million bridge loan secured by OGX Maranhão to fund the development of the Gavião Real and Gavião Azul gas fields in the Parnaíba Basin. This cash inflow was partially offset by CAPEX investments of about R$1.1 billion.

Accounts receivable

The R$118 million balance of accounts receivable in 1Q12 is a landmark for the Company, representing the booking of OGX's first oil sale. In March of 2012, approximately 550,000 barrels of oil were sold to Shell.

Intangibles and property, plant and equipment

Intangibles and property, plant and equipment represent, above all, capital expenditures during the exploration and development stages and include expenses related to the acquisition of concession rights, drilling campaigns and acquisition of E&P equipment. This line increased approximately R$1.1 billion in the period due to the heightened drilling campaign and the development at the Gavião Real and Gavião Azul gas fields. During the EWT, gross sales revenue net of costs, is accounted for as a reduction of CAPEX (Intangible) and not income for the period.

Loans and Financing

Loans and financing increased R$2.5 billion compared to 4Q11 due to the fundraising operations carried out in 1Q12: (a) Senior Unsecured Notes in the amount of US$1.1 billion or R$1.9 billion; and (b) financing for OGX Maranhão in the amount of R$600 million.

Balance Sheet and Income Statements

Assets - R$ ('000)	03/31/12	12/31/11
Total Assets	16,676,754	14,350,197
Current Assets	6,869,379	5,573,730
Cash*	6,619,170	5,458,780
Receivable accounts	118,003	-
Recoverable taxes	75,434	78,137.00
Financial instruments - Derivatives	3,023	8,879
Oil stocks	9,594	-
Others	44,155	27,934
Non-current Assets	9,807,375	8,776,467
Inventory	281,528	390071
Deferred Taxes	286,921	278,810
Related parties	321,365	282,693
Investments	142,408	139,386
Property, plant and equipment	364,404	276,856
Intangibles	8,410,749	7,408,651
*Cash and Cash Equivalents + Marketable Securities + Escrow Deposits
Liabilities + Shareholders’ Equity - R$ ('000)	03/31/12	12/31/11
Total Liabilities	16,676,754	14,350,197
Current	762,168	719,308
Suppliers	419,613	431,931
Taxes and contributions payable	9,508	26,070
Compensations and benefits	63,623	54,507
Loans and Financing	125,330	22,301
Financial instruments - derivatives	2,738	-
Accounts payable to related parties	83,048	96,692
Other payments	58,308	87,807
Non-current assets	7,134,547	4,761,856
Loans and Financing	7,122,819	4,750,113
Related parties	-	-
Provisions and contingencies	11,728	11,743
Shareholder’s Equity	8,726,465	8,814,560
Minority interest	53,574	54,473
Capital	8,819,611	8,810,307
Capital reserves	220,344	274,109
Retained earnings (losses)	89,099	-
Cumulative Conversion Adjustment	19,258	19,588
Accumulated losses	(421,847)	(289,444)

Financial Statement - R$ ('000)	1Q12	4Q11	Variance
Operating income (expenses)	(202,033)	(399,498)	197,465
Exploration Expenses	(109,143)	(300,673)	191,530
General and Administrative	(92,890)	(98,825)	5,935
Net financial result	18,559	(120,453)	139,012
Financial Income	418,114	1,082,338	(664,224)
Financial Expenses	(399,555)	(1,202,791)	803,236
Profit (loss) before Income Tax and Social Contribution	(183,474)	(519,951)	336,477
Income Tax and Social Contribution	38,672	187,364	(148,692)
Net profit (loss) before minority interest	(144,802)	(332,587)	187,785
Minority interest	(12,399)	(10,553)	(1,846)
Net profit (loss) for the period	(132,403)	(322,034)	189,631
Number of shares	3,234,604,106	3,233,750,500	853,606
Profit (loss) per share – in R$*	(0.04093)	(0.09959)	0.05865
* Calculated only over the loss attributed to the Controlling Shareholders

Conference Call:

Tuesday, May 15 at 9 A.M. (Brasília); 8 A.M. (EDT)
Telephone (Brazil): [phone] or [phone]
Telephone (US): [phone]
Code: OGX

Webcast in Portuguese: www.ccall.com.br/ogx/1t12.htm

Webcast in English: www.ccall.com.br/ogx/1q12.htm

Audio will be available three hours after the conference call on the IR website: www.ogx.com.br/ir

The conference call will be conducted in English with simultaneous translation into Portuguese.

ABOUT OGX

OGX Petróleo e Gás SA is focused on oil and natural gas exploration and production and is conducting the largest private-sector exploratory campaign in Brazil. OGX has a diversified, high-potential portfolio, comprised of 30 exploratory blocks in the Campos, Santos, Espírito Santo, Pará-Maranhão and Parnaíba Basins in Brazil, and 5 exploratory blocks in Colombia, in the Middle Magdalena Valley, the Lower Magdalena Valley and the Cesar-Ranchería basins. The total extension area is of approximately 7,000 km² in sea and approximately 37,000 km² on land, with 24,500 km² in Brazil and 12,500 km² in Colombia. OGX relies upon an experienced management team and holds a solid cash position, with approximately US$3,6 billion in cash (as of March, 2012) to fund its E&P investments and new opportunities. In June of 2008, the company went public raising R$6,7 billion, which at the time was the largest amount ever raised in a Brazilian IPO. OGX is a member of the EBX Group, an industrial group founded and under the leadership of Brazilian entrepreneur Eike F. Batista, who has a proven track record in developing new ventures in the natural resources and infrastructure sectors. For more information, please visit: www.ogx.com.br/ri. You can also follow the beginning of OGX’s first oil production at www.ogx.com/firstoil

LEGAL NOTICE

This document contains Company-related statements and information that reflect the current vision and/or expectations the Company and its management have regarding its business plan. These include, among others, all forward-looking statements that involve forecasts and projections, indicate or imply results, performance or future achievements, and may contain words such as “believe,” “foresee,” “expect,” “consider,” “is likely to result in” or other words or expressions of similar meaning. Such statements are subject to a series of expressive risks, uncertainty and premises. Please be advised that several important factors can cause the actual results to diverge materially from the plans, objectives, expectations, estimations, and intentions expressed in this document. In no event shall the Company 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. The Company 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.