OGX and MPX, the oil and gas and energy companies of EBX Group, announced that have identified the presence of gas in a second well in the onshore basin of Parnaiba, through its subsidiary OGX Maranhao. The gas has been found in the well 1-OGX-22-MA, in block PN-T-68, in Maranhao State. OGX Maranhao, an entity formed by OGX S.A. (66.6%) and MPX Energia S.A. (33.3%) is the operator and holds a 70% stake in this block, while Petra Energia S.A. holds the remaining 30%.
After drilling the first 10 meters in the Upper Devonian section with significant gas shows, at a depth of 1,520 meters, OGX Maranhao has decided to conduct a drillstem test. The well was opened to a flow which reached a wellhead pressure of 1,950 psi with flames of approximately 20 meters long. After the conclusion of the test, the drilling of well OGX-22, Fazenda Sao José prospect, will continue until the estimated total depth of 3,200 meters, targeting new exploratory objectives.
“The drilling of this second successful well, performed at a new wildcat and independent structure, located 12.5km away from 1-OGX-16-MA (California), confirmed the presence of a petrolific province in the region and highlighted the potential of our blocks”, commented Mr. Paulo Mendonça, General Executive Officer of OGX.
“This new finding reinforces our belief in the strategic importance of the Parnaiba Thermal Generation Complex, the development of which should be a landmark in the expansion of gas-based energy generation in Brazil as well as a main driver for MPX’s future growth,” commented Mr. Eduardo Karrer, CEO of MPX.
The MPX Parnaiba power generation complex, a partnership between MPX (70%) and PETRA Energia S.A. (30%), consists of gas-fired plants that are expected to provide up to 1,863 MW of power. The complex will be fueled by the gas produced in the blocks and has already been granted the Preliminary License.
The OGX-22 well, located in the PN-T-68 block, is situated approximately 260 kilometers from Sao Luis, the capital of the state of Maranhao. The rig QG-1 initiated drilling activities there on October 23, 2010.
