OGX Continues Positive Exploratory Campaign in Brazil

New Wave Media

Since last year OGX Petróleo e Gás has been having excellent results in its exploratory campaign in the Campos Basin.

OGX Petróleo e Gás, which is the Brazilian O&G company responsible for the largest private sector exploratory campaign in Brazil, recently announced that it had identified two oil-bearing intervals, one in the Aptian section of well 1-OGX-10-RJS and another in the Eocene section of well 1-OGX-13-RJS, which are located in the BM-C-42 and BM-C-41 blocks, respectively, in the shallow waters of the southern part of the Campos Basin, where they have been drilling the majority of their exploratory wells, with a very high percentage of success. OGX holds a 100% working interest in both blocks.
In well OGX-10, the Hawaii prospect, an oil column of approximately 110 meters and net pay of approximately 40 meters was identified in the carbonate reservoirs of the Aptian section. The well is in its final stage of log analysis. Therefore the rig, Sea Explorer, provided by Pride International, has been moved to well OGX-7A, the Huna prospect, in order to conduct additional tests.
Regarding well OGX-13, the second appraisal well for the Vesuvio accumulation, a net pay of approximately 10 meters was encountered in sandstone reservoirs in the Eocene section. Preliminary information indicates that this well was drilled in one of the structure’s boundaries, making an important contribution towards delineating of the Vesuvio accumulation. Drilling activities have been concluded at OGX-13. As a result, the rig Ocean Lexington, provided by Diamond Offshore, has been moved to the Peró prospect, located in the block BM-C-40.
The drilling of well OGX-10, situated approximately 79 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 158 meters, commenced on March 2, 2010. At OGX-13, situated approximately 87 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 138 meters, drilling started on May 5, 2010.

Continuing their exploratory campaign, OGX is also having success at their new prospects located in the Santos Basin. Based on tests completed at well 1-OGX-11D-SPS, it has concluded that the previously announced discovery of hydrocarbons at the Natal prospect in the Santos Basin refers to an accumulation of liquid hydrocarbons with associated gas.
“The discovery of liquid hydrocarbons in sandstone reservoirs presenting high permo-porosity indicates an even higher attractiveness to the project than previously anticipated”, commented Paulo Mendonça, General Executive Officer of OGX.
Following the announcement released on May 24, 2010, mentioning evidence of hydrocarbons, gas and condensate in the Santonian section of well OGX‐11D, new studies including logging tests, lateral core sampling, pre‐tests and a cable test have been conducted, which led to the conclusion that the discovery refers to an accumulation of liquid hydrocarbons with associated gas.
The total oil column and net pay identified in the sandstone reservoirs of the Santonian section have increased to approximately 180 meters from 42 meters and 75 meters from 34 meters respectively, exhibiting excellent levels of permo‐porosity. The liquid hydrocarbons encountered are of high quality, with an API of approximately 41°. The drilling of the well is still in progress and is expected to continue to a final depth of 6,100 meters, targeting deeper objectives.
The well, located in the BM-S-59 block, is situated 104 kilometers off the coast at a water depth of approximately 170 meters. The rig, Ocean Quest, provided by Diamond Offshore, initiated drilling activities on April 9, 2010. OGX also holds a 100% working interest in this block.

The latest news is that OGX has identified an oil-bearing interval in the Albian section of well 1-OGX-14-RJS, located in the BM-C-40 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

"This discovery represents another very important step for OGX since hydrocarbons were detected in an area to the north of our recent discoveries in Campos in which the Company had not drilled previously," commented Paulo Mendonça, General Executive Officer of OGX.

An oil column of about 60 meters with approximately 22 meters of net pay was encountered in carbonate reservoirs in the Albian section. The drilling of well OGX-14, also known as the Pero prospect, is still in progress and is expected to be drilled to a maximum final depth of approximately 3,400 meters.

The OGX-14 well, located in the BM-C-40 block, is situated approximately 96 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 104 meters. The rig Ocean Lexington, provided by Diamond Offshore, initiated drilling activities on May 30, 2010.

The fact that they are finding high quality light oil in the shallow waters of the Santos Basin is definitely interesting as it points to further light oil potential in the Santos Basin, which is mainly known for its deepwater pre-salt plays. It will probably be many years until the full potential of the Santos Basin is uncovered but these recent results should increase the interest in Brazil´s newest O&G Basin.

The company also believes that the many recent discoveries in the southern section of the Campos Basin may be an indication of the existence of a large shallow water O&G province previously unknown in this portion of the Campos Basin.

 

Claudio Paschoa

Photo courtesy of OGX Petróleo e Gás