OGX On A Roll In The Southern Campos Basin

New Wave Media

With 8 exploratory wells producing hydrocarbon discoveries during the year and with estimates of recoverable oil of around 5 billion barrels, OGX ends 2009 on a very positive high.

OGX Petróleo e Gás Participações S.A., announced two days ago that it had completed the drilling of well 1-OGX-2A-RJS, located in the BM-C-41 block, in the shallow waters of the southern part of the Campos Basin. OGX holds a 100% working interest in this block.

The well was drilled to a depth of approximately 3,550 meters, resulting in the finding of hydrocarbons in five different reservoirs: Eocene, Upper Cretaceous, Albian, Aptian and Barremian. Once the drilling of the well was concluded, wireline pretests and sampling, final logging and sidewall coring were carried out in order to refine the existing information and obtain additional data.

Based on the well information associated with the 3D seismic data interpretation, OGX estimates a recoverable oil volume for all reservoirs of between 1 and 2 billion barrels. The tests confirmed the presence of high quality carbonate reservoirs. Preliminary analysis indicates lighter oil in the deeper reservoirs. 

“The drilling of the well OGX-2A confirms the vast oil potential of the southern part of the Campos Basin, which we believe will become a major oil producing region in Brazil,” commented Paulo Mendonça, General Executive Officer of OGX. “This result is extremely important because the drilling revealed oil volumes which constitute a substantial portion of prospective resources estimated by DeGolyer & MacNaughton,” added Mr. Mendonça.

Ocean Ambassador, the rig used in the drilling activities at this well, will be mobilized to the next location in the BM-C-43 block.  The drilling of the next well, also located in the shallow waters of the southern part of the Campos Basin, is expected to commence in the final days of December 2009.

Another important development was announced by OGX last week. The Brazilan player released that it had identified an oil-bearing interval in the Albian section in the well 1-OGX-3-RJS, also located in the BM-C-41 block, in the shallow waters of the southern part of the Campos Basin. OGX also holds a 100% working interest in this block.

An oil column of over 130 meters with around 80 meters of net pay has been encountered in carbonate reservoirs with certain intervals presenting porosities in excess of 30%. The well OGX-3 remains in the hydrocarbons zone and drilling will continue aiming at additional objectives.

"This discovery in OGX-3 is very significant as it reinforces our belief that we are facing a new oil province in the southern part of the Campos Basin,” commented Paulo Mendonça, OGX's General Executive Officer. “We are particularly surprised by the excellent levels of permo-porosity found in the carbonate reservoirs in the Albian section,” added Mendonça.

The well is situated approximately 83 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 130 meters.  The rig Sea Explorer, provided by Pride International, initiated drilling activities at 1-OGX-3-RJS on November 16th, 2009.

OGX will end the year with about 8 major hydrocarbon discoveries in its exploration wells in the shallow water southern part of the Campos Basin.

These recent discoveries will directly reflect on subsea equipment suppliers. OGX had already placed an order for G&E Subsea VetcoGray wellheads and other support equipment.

The frame agreement with OGX, one of the largest agreements VetcoGray has ever secured in Brazil, will cover the supply of MS-700 and MS-800 subsea wellhead systems, including large bore casing strings, associated rental tools and onshore and offshore assistance during the entire drilling campaign.

Since this agreement was signed, OGX has substancially increased the scope of its exploratory drilling campaign and is consistently reaching positive results.

It can be forseen that there will be an increase in subsea equipment requirements in order to meet this increased exploratory scope.

Early 2009 forecasts were tipping the southern Campos Basin to have a potencial reservoirs of 4,835 billion barrels/boe. OGX will finish 2009 having proven a potencial of around 5 billion barrels/boe and that is just in the shallow water Campos Basin blocks.

Congratulations to OGX Petróleo e Gás Participações S.A. on such an extraordinary year and may the future be just as brilliant.

OGX is part of the EBX Group, the company was launched in 2007 and put together a highly experienced O&G team and through strategic investments is already reaping the rewards. Some of these wells are planned to start production as soon as 2011.

 

Claudio Paschoa

Photo C. Paschoa