OGX announces that The Brazilian Petroleum, Natural Gas and Biofuels Agency (ANP) approved the transfer of 70% of the rights and obligations related to seven exploratory onshore blocks in the Parnaiba Basin, in the state of Maranhao, held by its subsidiary OGX Petroleo e Gas Ltda. to OGX Maranhao Petroleo e Gas Ltda., a special purpose vehicle in which the Company holds 66.7% and MPX Energia S.A. 33.3% of the capital, as disclosed in the Notice to the Market on September 24, 2009.
On September 24, 2009, OGX Ltda. acquired the participation interest in the Blocks from Petra Energia Ltda., which retains a 30% working interest in the Blocks. At that time, OGX and MPX signed a Memorandum of Understanding which formalized the intention of transferring the acquired participation to OGX Maranhao upon approval by the ANP. This Memorandum of Understanding also formalized the intention to execute an agreement for OGX Maranhao to supply natural gas to thermoelectric plants to be developed by MPX in association with Petra, which could guarantee demand for up to the entire quantity produced in the Blocks.
OGX also announces that it has hired from Queiroz Galvao an onshore rig, QG-1, which will be responsible for drilling activities expected to begin in May. The Blocks are located in the Parnaiba Basin, considered a new exploratory frontier, and extend over an area of 21,471 km² which presents relevant potential for gas production, confirmed by a well drilled in 1987 where evidence of hydrocarbons was found.
