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Management Presentation
Disclaimer
This presentation uses the terms “potential petroleum quantities”, “prospective resources” and “contingent resources” to describe those quantities of petroleum that are potentially recoverable from accumulations yet to be discovered. Because of the uncertainty of commerciality and lack of sufficient exploration drilling, and the lack of identified prospects, leads, or future development and exploration projects, the potential petroleum quantities estimated herein cannot be classified as prospective resources, contingent resources or reserves, and the prospective resources and contingent resources cannot be classified as reserves. Investors are advised that the U.S. Securities and Exchange Commission (SEC) and other international securities regulators do not recognize potential petroleum quantities and prospective and contingent resources. There is no certainty that any portion of the potential petroleum quantities or prospective resources will be discovered and, if discovered, whether they could be developed economically. Therefore, investors are cautioned not to assume that all or any part of OGX’s potential petroleum quantities or prospective resources exist, or that they can be developed economically. Accordingly, information concerning potential petroleum quantities and prospective and contingent resources contained in this presentation are not comparable to information permitted to be made public by U.S. or other international companies subject to SEC reporting and disclosure requirements, especially Regulation S-K under the Securities Act.
Certain of the information and conclusions set forth herein are based on projections. These projections were prepared for the limited purpose of analyzing the potential risks and benefits of an investment in the securities by illustrating under certain limited assumptions projected capital and operating expenditures, installed production capacity, expected production, and number of wells drilled. In addition, because of the subjective judgments and inherent uncertainties of projections and because the projections are based on a number of assumptions, which are subject to significant uncertainties and contingencies that are beyond the control of OGX, there can be no assurance that the projections or conclusions derived therefrom will be realized. Under no circumstances should the projections set forth herein be regarded as a representation, warranty or prediction that OGX will achieve or is likely to achieve any particular future result. There can be no assurance that OGX’s future results or projections will not vary significantly from those set forth herein. Accordingly, investors may lose all of their investment to the extent the projections or conclusions included herein are not ultimately realized.
This presentation also contains forward-looking statements, which may be identified by such words as "may", "plans", "expects", "believes" and similar expressions, or by their context. These statements are made on the basis of current knowledge and, by their nature, involve numerous assumptions and uncertainties.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.
Various factors could cause OGX's actual future results, performance or events to differ materially from those described in this presentation. In no event shall OGX 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. OGX 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.11
2
Agenda
OGX Overview
OGX Portfolio
OGX Operations
Execution on Track
Financial Overview
Appendix
3
Last update: 11/24/11
OGX Overview
OGX Overview
OGX is among the 15 largest pure E&P companies globally with a market cap of approximately US$25 billion, and is the 3rd most traded stock in Latin America
World class E&P portfolio with 10.8 billion boe of potential resources, mostly in shallow waters and onshore (low cost and off-the-shelf technology)
Multi-billion barrel discoveries and overall success rate exceeding 90% with high productivity reservoirs amongst the best in Brazil
Solid cash position allows OGX to conclude the largest and most successful private sector exploratory campaign in Brazil and to support production development (more than 70 wells spud since the beginning of its exploratory campaign in Aug. 2009)
Highly successful and experienced management team, combining unique intellectual capital and superior execution skills
Proven execution capability (from concept to oil in an unprecedented timing) with fully established operations comprising more than 5,000 people
Brazil’s historical under-exploration underpins massive growth opportunities for OGX
5
OGX Main Accomplishments
OGX Main Accomplishments
6
Proven execution capability (from concept to first oil in unprecedented timing) with fully established operations comprising more than 5,000
people
OGX Creation
US$1.3 bnraised through an equity Private Placement
21 blocks acquired during the 9th Bidding Round
Jul/07Nov/07
Jun/08
IPO: US$4.1 bn raised
Aug/09
Jan/10
Bond: US$ 2.6bn raised
Beginning of thedrilling campaign
Acquisition of 70% stake in the Parnaíba Assets
Jun/10
OGX included in the Ibovespa Index
1st FPSO secured for 20 years
Survey and interpretation of the 3D seismic dataProcurement of all equipment and services necessary to initiate the drilling campaign
Apr/11
5 onshore blocks acquired in Colombia
May/11
1st Oil
4Q11
Sep/09
Updated OGX portfolio to 10.8 bn(1) boe of potential resources
Total investments of US$ 4.1bn of Drilling Capex and Bonus Signature + US$ 245 M of Seismic Campaign
Total cash raised to date: US$8.0 bn
(1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports
1 block acquired in Parnaíba (50% stake)
Sep/11
Oct/11
Arrival of FPSO OSX-1
70%100%
Petróleo e Gás Ltda.
61% 39%
(1)
Petróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$25 Billion)
99.99%
Free Float
Free Float
Maranhão Petróleo e Gás Ltda.
66.67% (4)
OGX Ownership and Corporate Structure
7
(1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”)(2) OGX as operator(3) Market data as of September 30, 2011(4) MPX S.A. holds 33.33%
Daily traded average
volume (1 month):
~ US$184 million
~33 thousand investors
3rd most representative
stock in Ibovespa index 4.1%
Most liquid common share
OGX Campos Petróleo e Gás S.A.
30%
99.99%
8 Blocks
7 - Parnaíba (70%) (2)
1 – Parnaíba (50%) (2)
7 Blocks
5 - Campos (100%) (2)
2 - Campos (50%)
20 Blocks
5 - Santos (100%) (2)
5 - Espirito Santo (50%) 5 - PAMA (100%) (2)
5 - Colombia (100%) (2)
100%
Highly successful and committed management team, Combining unique intellectual capital and superior execution skills
Oil & Gas CommercializationJoaquim Dib Cohen (32)
Oil & Gas CommercializationJoaquim Dib Cohen (32)
Gen. Exec. OfficerPaulo Mendonça (38)
Gen. Exec. OfficerPaulo Mendonça (38)
Exploration OfficerPaulo Mendonça (38)
Exploration OfficerPaulo Mendonça (38)
General Counsel José Roberto Faveret
General Counsel José Roberto Faveret
CFOMarcelo Torres
CFOMarcelo Torres
Production OfficerReinaldo Belotti (34)
Production OfficerReinaldo Belotti (34)
CEOEike Batista
CEOEike Batista
Exploration Campos-ESPaulo Ricardo (28)
Exploration Campos-ESPaulo Ricardo (28)
Reservoir & ReservesRoberto Toledo (31)
Reservoir & ReservesRoberto Toledo (31)
Onshore BasinCelso Martins (34)
Onshore BasinCelso Martins (34)
ProcurementOlavo Foerch (32)
ProcurementOlavo Foerch (32)
DrillingRicardo Juiniti (27)
DrillingRicardo Juiniti (27)
LogisticsBilly Pinheiro (30)
LogisticsBilly Pinheiro (30)
Production DevelopmentJosé Brito (42)
Production DevelopmentJosé Brito (42)
InternationalErnani Posrche (33)
InternationalErnani Posrche (33)
Geological OperationsMoacir Santos (38)
Geological OperationsMoacir Santos (38)
ProductionRicardo Abiramia (24)
ProductionRicardo Abiramia (24)
E&P LaboratoryDolores Carvalho (35)
E&P LaboratoryDolores Carvalho (35)
Applied TechnologyMarcos Amaral (28)
Applied TechnologyMarcos Amaral (28)
New Areas Executive Manager
Paulo de Tarso Guimarães (34)
New Areas Executive Manager
Paulo de Tarso Guimarães (34)
Exploration Santos and Eq. Margin
Edmundo Marques (24)
Exploration Santos and Eq. Margin
Edmundo Marques (24)
Strategic AlliancesLuiz Reis (45)
Strategic AlliancesLuiz Reis (45)
HSELeandro Leme (31)
HSELeandro Leme (31)
Management Organization Structure (1)
8
(1) Parentheses represent years experience in the E&P industry
PBR success index
Exploratory Team
Paulo Mendonça led the Petrobras exploration team from 2002 to 2007
Success index in excess of 60% on average offshore Brazil from 2002-2007 whilst at Petrobras
Over 10 billion boe and more than 50 new fields discovered
Proven track record having opened several new oil frontiers, including the pre-salt, and discovering over 50 new oil fields
Highly Qualified Exploration Team
9
Brazil: Vast Untapped Oil & Gas PotentialBrazil: Vast Untapped Oil & Gas Potential
10
Country Historical Oil & Gas Production (bn boe)
USA (1900-2010) 440
EX-USSR(1900-2010) 335
SAUDI ARABIA(1938-2010) 145
BRAZIL (1941-2010) 14.5
Source: EIA-DOE, BP Statistical Review of World Energy 2010, Saudi Aramco, UPPSALA University, Petrobras, ANP and OGX analysis
Source: ANP
Still significantly under-explored
Oil & gas in the world
Oil and Gas Discovered Volumes
2000 – 2010 (Bn boe)Source: IHS
Largest oil and gas discoveries in the world
Source: BP Statistical Review of World Energy 2010 & analyst estimates
New provinces could propel Brazil into top reserves holders
Oil Resources - December 2009 (Bn bbl)
% of sedimentary basins under concession
0
10,000
20,000
30,000
40,000
Bn Boe
Brazil
Turkmenista
n Iran
Kazakhstan
China
Russia
Australia
Kuwait
Israel
Saudi Arabia
India
Indonesia
Venezuela
Papua
New Guinea
Ghana
+ 35 bn boe 265
172
138
115
102
100
98
74
44
40
37
33
28
27
15
14
13
Saudi Arabia
Venezuela
Iran
Iraq
Kuwait
Brazil post
Tupi
UAE
Russia
Libya
Kazakhstan
Nigeria
Canada
US
Qatar
China
Angola
Brazil
Brazil’s historical under-exploration underpins massive growth opportunities for OGX
Unlicensed 96%
Licensed 4%
OGX Portfolio
35 blocks: 30 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 3 Colombian sedimentary basins
Unique portfolio with 10.8 billion potential recoverable barrels of oil equivalent (boer)
OGX’s business plan is based on 4.1 billion barrels already discovered in the shallow waters of the Campos Basin
Portfolio
Deep water~1,000m
Shallow water~150m
Shallow water ~120m
Shallow water ~60m
12
OGX Portfolio
5.7 bn bbl of net 3C, net delineation and net mean risked prospective resources, evaluated by D&M (pre-salt not included)
5 blocks operated by OGX (100% owned) and 2 operated by Maersk Oil (50% owned)
Total area of 1,177 km2
Average water depth of ~120m
52 wells drilled
Almost 100% success rate
Campos Basin
OGX’s discovered accumulations confirm a new hydrocarbon province in the southern Campos Basin
Campos Basin: Low Risk, Shallow Water and Large
13
Santos Basin: High Potential
14
Santos Basin
1.8 bn boe of net risked prospective resources (POS of 27%), evaluated by D&M
5 blocks operated by OGX (100% owned)
Total area of 820 km²
Average water depth of ~150 m
10 wells drilled
2 recent successful tests (OGX-47 and OGX-11D) – 20-25% condensate with great flow rates
~ 65% success rate
Santos Basin is one of the most promising exploratory areas in Brazil, with significant potential for gas and light oil
New frontier Basin with high potential for gas production
Parnaíba basin
Parnaíba Basin: Major Gas Province
15
1.0 bn boe of net risked mean prospective resources POS (17%) and net 3C, evaluated by D&M
8 blocks operated by OGX Maranhão
Total area of 24,500 km²
Monetization of gas through thermoelectric plants to be developed by MPX/Petra (3,722 MW already licensed)
>75% success rate (10 wells drilled)
Commerciality declared for 2 accumulations
Pará Maranhão Basin: Promising New Frontier
16
Pará-Maranhão Basin
447 mn boe of net mean risked prospective resources (POS of 21%), evaluated by D&M
5 blocks operated by OGX (100% owned)
Total area of 960 km²
Average water depth of ~60m
1st well to be drilled in 2012
New frontier with geological model similar to West Africa, where significant discoveries were made
recently
Espírito Santo Basin: New Frontier in Deep Water
17
Espírito Santo Basin
817 mn boe of net mean risked prospective resources (POS of 33%), evaluated by D&M
5 blocks operated by Perenco (50% owned)
Total area of 3,620 km²
Average water depth of ~1,000 m
1st well initiated drilling in 4Q11 (Moriche)
2nd well in 1Q12 (Guarapari)
The new frontier of Espírito Santo has proven to be a very active petrolific system with recent important
discoveries in neighboring blocks
Colombia: Cesar-Ranchería, Middle and Lower Magdalena Valleys: Great Upside Potential
18
MARACAIBO BASIN
Colombian Basins
1.1 bn boe of net prospective resources and net potential petroleum quantities, evaluated by D&M
5 blocks operated by OGX (100% owned), 3 of which are located close to Maracaibo Basin (~80 bn boe discovered and ~50 bn boe already produced)
Beginning of the Seismic Campaign in 2H11
Balanced portfolio of exploratory assets, combining production regions with less explored areas next to the Maracaibo basin,
one of the most prolific provinces in the world
19%Onshore
8%Deep
Water
Portfolio Breakdown
Oil discoveries of 4.1 bn bbl are already under production development in the shallow waters of Campos Basin
OGX Portfolio Potential(1)
billion boe (7)
OGXNet
CAMPOS 5.7
Contingent (2)3.0
Delineation (3)1.3
Prospective (POS = 56.2%) 1.4
SANTOS (4)(6) (POS = 27.0%) 1.8
ESPÍRITO SANTO(4) (POS = 32.6%) 0.8
PARÁ-MARANHÃO(4) (POS = 21.3%) 0.4
PARNAÍBA 1.0
Contingent (2)0.1
Conventional Prospective (POS = 16.5%) 0.6
Unconventional Prospective (POS = 18.2%) 0.4
COLOMBIA 1.1
Prospective (POS = 10.4%)(4) 0.1
Potential Petroleum Quantities(5)1.0
OGX Portfolio 10.8
OGX Portfolio Potential: Breakdown
19
Note: “POS “ defined as geological probability of success(1) The OGX portfolio potential was calculated by OGX based on volume estimates contained in the DeGolyer and MacNaughton Reports(2) We consider the 3C contingent resources in the arithmetic summation of our potential portfolio based on the assumption that these resources will be converted to 2C and 1C resources after the appraisal campaign and that they will be converted into reserves after the removal of contingencies(3) We consider the high estimate and not Pg-adjusted delineation area prospective resources as we believe the delineation area is part of the 3C area(4) Prospective resources mean estimates Pg-adjusted. Colombia considered two Colombian basins, the Lower and Middle Magdalena Valleys Basins(5) Includes petroleum potential quantities in one Colombian basin, the Cesar-Ranchería Basin(6) OGX net interests in the table are not the same as OGX net interests contained in the DeGolyer and MacNaughton September 2009 report due to the fact that OGX now holds 100% of the interests in the concessions included in that report(7) Gas volumes were converted by OGX to barrels of oil, using a conversion rate of 5,615 ft³ of natural gas to one boe
73%ShallowWater
21%Gas
79%Oil
OGX Operations
BCH-05E (BCH): Daily Rate: US$ 31.5k Max. well depth: 11,500 ft Contract Expires: Feb.2012
3rd rig contracted
Onshore DrillingOffshore Drilling
Ocean Lexington (Diamond): Daily Rate: US$ 335k Max. well depth: 20,000 ft Contract Expires:
Feb.2013 (+one optional year)
Ocean Ambassador (Diamond):
Daily Rate: US$ 260k Max. well depth: 20,000 ft Contract Expires: Sep.2012
(+ one optional year)
Ocean Quest (Diamond): Daily Rate: US$ 270k Max. well depth: 25,000 ft Contract expires: Dec.2012
(+ one optional year)
ENSCO 5002 (Ensco) Daily Rate: US$ 220k Max. well depth : 20,000 ft Contract Expires: Nov.2013
Ocean Star (Diamond): Daily Rate: US$ 310k Max. well depth: 25,000 ft Contract Expires: Feb.2013
(+ one optional year)
ENSCO 5004 (Ensco): Daily Rate: US$235k Max. well depth: 20,000 ft Contract Expires: Nov.2013
Wildcat + Appraisal Wells 2009 2010 2011 2012 2013 Total
Campos 5 18 18 4 0 45Santos 1 6 3 4 0 14
Espírito Santo 0 0 2 3 1 6 Pará Maranhão 0 0 0 4 3 7
Parnaíba 0 2 9 4 0 15Total 6 26 32 19 4 87
Drilling campaign expanded – 8 rigs already operating simultaneously
Exploration Drilling Campaign
21
QG-1 (Queiroz Galvão): Daily Rate: US$ 28k Max. well depth: 14,750 ft Contract Expires: Jan.2012
FIRST CLASS SUPPLIERS
HIGH QUALIFIED TEAM
LOGISTICS OPERATIONAL
SUPPORT
PLATFORM SUPPLY VESSEL (PSV)
QUANTITY:5
CONTRACTOR: EDISON CHOUEST/ TIDE WATER
ANCHOR HANDLING TUG SUPPLY (AHTS)
QUANTITY: 6
CONTRACTOR: EDISON CHOUEST/NORSKAN/MAERSK
FAST SUPPLY VESSEL (FSV)
QUANTITY: 1
CONTRACTOR: EDISON CHOUEST
MID SIZE HELICOPTER
QUANTITY: 4
CONTRACTOR: AERÓLEO OGX Team: ~300 employees
Over 5,000 people dedicated
3D Room / IOSC
Operational Capabilities and Structure
22
EFFICIENCY,
AGILITY AND
OPERATIONAL
SECURITY
Execution on Track
26 wildcat wells and 26 appraisal wells drilled with hydrocarbons and results which support expectations
Campos Basin: Focusing on Wildcat & Appraisal Wells
24
Note:Drilling area as per D&M’s Dec/10 reports and net pay
Appraisal wellsWildcat Wells2009
OGX-1
OGX-2 A
OGX-3
2010
OGX-4
OGX-5
OGX-6
OGX-7 A
OGX-8
OGX-10
OGX-14
OGX-15
OGX-18
OGX-20
MRK-3/4P
2011
OGX-25/27
OGX-28D
OGX-29/32
OGX-31
MRK-5
OGX-33
OGX-37
OGX-52
OGX-58DP
2010
OGX-9D
OGX-13
OGX-21/OGX-26HP
2011 - Drilling Area 1C
OGX-50D/OGX-55HP
1C – Albian 52m
OGX-53D/OGX-60HP
1C – In Progress
OGX-65D/OGX-68HP
1C – Albian 97m
2011 - Drilling Area 2C
OGX-40D 2C – Albian 107m
OGX-41D/OGX-44HP
2C – Albian 92m
2011 - Drilling Area 3C
OGX-35D 3C – Albian 80m
OGX-36D/OGX-39HP
3C – Albian 60m
OGX-42D 3C – Albian 82m
OGX-48 3C – Albian 12m
OGX-56D 3C – Albian 60m
OGX-61 3C - In Progress
OGX-62 3C – Santonian 26m Albian 20m
OGX-64 3C – Santonian 23m
OGX-67 3C – In Progress
2011 - Drilling Area Delineation
OGX-43D Delineation– Albian 50m
OGX-45D Delineation – Maastric. 5m
OGX-54 Delineation– Albian 24m
Campos Basin: Development Business Plan
25
Project 1 Waimea Complex 1st oil date: 4Q11
42 development wells— 28 production — 14 injection
3 FPSOs and 2 WHPs— OSX-1, OSX-2 and
WHP-1 Oil of 20° API Water depth: 140m Average production
per well 10 – 20 kbpd
Project 2Waikiki Complex 1st oil date: 4Q13
22 development wells— 14 production — 8 injection
1 FPSO and 1 WHP— OSX-3 and WHP-2
Oil of 23° - 28° API Water depth: 120m Average production
per well 15 – 20 kbpd
Campos Basin Development Plan
4.1 bn bbl
Shallow waters
Average production
per well 10 – 20 kbpd
12 FPSOs and 11
WHPs
—5 FPSOs and 2 WHPs
already secured
Average field life
—Capex US$ 2/bbl
—Opex <US$ 16/bbl
Illustrative
Initial Projects
Waimea OGX – 26HP
Production capacity of up to 20,000 bbl/day
Oil Quality of 20o API
Tested in Jan/2011
Recent Horizontal Wells TestedCampos Basin: Positive Horizontal Wells Test Results
26
3 drill-stem tests already performed in horizontal wells prepared for production
and more to come in the second half
Pipeline OGX-39HP
Production capacity of around 10,000 bbl/day
Oil Quality of 19o API
Tested in Jul/2011
Waikiki OGX-44HP
Production capacity of up to 20,000 bbl/day
Oil Quality of 23o API
Tested in Jun/2011
Drill-stem tests performed in horizontal wellsHorizontal wells tested
Campos Basin: Production Will Begin in the Waimea Accumulation
27
Beginning of Production Horizontal production well already drilled, completed and successfully tested
Hydraulic Power Unit (HPU) installed Umbilicals delivered Flexible lines delivered Anchor system (moorings and piles) delivered Installation support vessel delivered
Wet christmas tree installed Electrical submersible pump installed
EWT approved by ANP (National Petroleum Agency)
1st Oil Production Concept
OGX first oil expected for November through Extended Well Test (EWT)
Main characteristics:
Production potential of 40 kbpd w/ capacity limited to 20 kbpd
Oil quality of 20° API
Water depth of 140 meters
BuoyOSX-1
Risers and Umbilicals
Flexible lines
Wet christmas tree
Moorings and Piles
Illustrative frames
Horizontal WellElectrical submersible pump Preliminary and Installation
License
Granting of first licenses (LP and LI)
Public hearing: Jul 16, 2011Preliminary License (LP): Sep 8, 2011Installation License (LI): Sep 16, 2011
Buoy Installation
Mobilization of equipment to the siteInstallation of buoy underway
Beginning of subsea installation
10 PilesMoorings chains
MWA (middle water arch)
Campos Basin: Steps Towards 1st Oil
28
Launch of the lines
Installation of flexible lines and umbilicalsConnection to wet christmas tree
1st Oil
Granting of the Operation License (LO)Production start-up
FPSO OSX-1
Arrived in Brazil on October 06, 2011Connection to the production system
Campos Basin: Steps Towards 1st Oil
29
Campos Basin: Waimea Complex Production Concept
30
Pioneer Project Development 5 development wells connected to
the FPSO OSX-1
— 3 horizontal production wells
— 1st production well, OGX-26HP, ready for production
— 2nd production well, OGX-55HP, currently being drilled
— 3rd production well, OGX-60HP, currently being drilled
— Average production per well 10–20 kbpd
— 2 subsea injection wells
1 FPSO: OSX-1
— OSX-1 arrived in October/2011
OGX-55HP and OGX-60HP wells to be hooked-up to OSX-1 after the declaration of commerciality next year
With 3 production wells on stream in 2012, OGX should reach production levels of ~50 kbpd
Illustrative frame
Pioneer Production Concept
Development Wells
Production Well 1(OGX-26HP)
Production Well 2(OGX-55HP)
Production Well 3(OGX-60HP)
Injection Well 1
Injection Well 2
Operational Expenditures(Leased Equipment)
Capital Expenditures
FPSOOil capacity: 100 K bpdLiquid capacity: 160 K
bpdOil will be offloaded
WHPCapacity: 30 wellsDrilling package on topside
Drilling + CompletionDevelopment wells with dry completionGas will be reinjected, used for gas lift or power generationWater Injection
WHP Subsea Flow Lines
Power lineGas Lift lineService line
Water Injection lineProduction line
Test line
Campos Basin: Replicable Development Concept
31
Opex<US$ 16/bbl
CapexUS$ 2/bbl
Note: Please see details in the Appendix slide: “Campos Basin: Typical Production Project”
OSX-1 delivered in October 2011
OSX-2 and OSX-3 to be built in world-class Singaporean shipyards by SBM and Modec
OSX-4 and OSX-5 hulls already acquired by OSX
OSX-1
OSX-2
OSX-3
OSX-4
OSX-5
OSX-6
OSX-7
OSX-8
OSX-9
OSX-10
OSX-11
OSX-12
Unit 2011 … 2013 2014 2015 2016
WHP-1 and WHP-2 with detailed engineering ongoing (EPC awarded to Techint by OSX)
Unit 2013 2014
WHP-1
WHP-2
WHP-3
WHP-4
WHP-5
WHP-6
WHP-7
WHP-8
WHP-9
WHP-10
WHP-11
Oct
1st Q
1st Q
4th Q
1st Q
3rd Q
4th Q
4th Q
4th Q
2nd Q
3rd Q
2nd Q
3rd Q
4th Q
3rd Q
4th Q
4th Q
4th Q
1st Q
2nd Q
3rd Q
4th Q
4th Q
WHPsFPSOs
FPSOs and WHPs Expected Deliveries
32
Production equipment allocated to begin operations until 2013
Waimea
WaimeaWaikiki
Waikiki
Waimea
2014
FPSOs WHPs
OSX-1: Production capacity of 80
kbpd and storage of 950 kbbl
Average Day rate of US$ 263 k
Arrived in Oct/11
OSX-2: Production capacity of
100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 290 k
Contracted by OSX with SBM
OSX-3: Production capacity of
100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 290 k
Contracted by OSX with MODEC
WHP-1: Capacity to drill up to 30
wells Equipment on-stream by
the end of 2013 Detailed engineering
ongoing (EPC awarded to Techint by OSX)
WHP-2: Capacity to drill up to 30
wells Equipment on-stream by
the beginning of 2014 Detailed engineering
ongoing (EPC awarded to Techint by OSX)
OSX-4: Production capacity of 100
kbpd and storage of 1.3 Mbbl
Order placed for Leasing contract and EPCI under procurement
OSX-5: Production capacity of 100
kbpd and storage of 1.3 Mbbl Order placed for Leasing
contract and EPCI under procurement
Two sister VLCC´s (Very Large Crude Oil Carriers) purchased on November, 2010 by OSX to be converted into FPSOs
Secured Production Equipment
33
Campos Basin: Oil Production Ramp-Up
34
Equipment (Physical Delivery)
OSX-1 (October) -OSX-2 (2Q13)OSX-3 (3Q13)
Project: Equipment (First Oil)
Waimea: OSX-1 (2011) Cont’ Waimea: OSX-1Waimea: OSX-2 (3Q13)Waikiki: OSX-3 (4Q13)
Additional Horizontal Production Wells On-stream
1 (OGX-26) 2 7
# of Cumulative Horizontal Wells On-stream
1 3 10
Installed Production Capacity
80 Kbpd 80 Kbpd 280 Kbpd
Oil Production Target (kbpd) ¹
50
20
150
2011 2012 2013
CAGR : 174%
Note:1 To be reached through the end of the period
Gavião Real
Gavião Azul
Parnaíba Basin: Business Plan
35
Declaration of commerciality of two fields
(Gavião Real & Gavião Azul) already
submitted to ANP
Initial production expected in 2H12
Production of 5.7 M m³per day in 2013
(2.7 M m³per day net to OGX S.A. or ~15
kboepd)
Three seismic crews working on the
blocks
3rd onshore rig contracted and expected
to commence operation in 4Q11
Gas to be sold to MPX Power Plants
MPX has obtained an additional 1,859 MW
of installation license, totaling 3,722 MW
Energy generated by MPX’s power plants
will be sold to the energy markets
Drilled and tested the first production
well in the basin, GVR-1 (Gavião Real
field)
EPC contracted for the construction of the
gas processing facility
-Contract signed with Valerus-Geogas
Parnaíba Complex
Legend:
Seismic
Lines
Project 1 1st gas: 2H12
23 production wells
Wells
Parnaíba Basin: Project Development
36
MPX + Petra investments
OGX Maranhão (70%) + Petra (30%) investments
Manifolds
Short Gas Pipeline(<2 km)
Gas Thermal Power Plant
Transmission Lines
Production Facility for Dry Gas
Gathering System
Lines
Parnaíba Development Schematic
Gas Thermal Power Plant Development
Capex field life
Total drilling cost: US$ 340 M (includes re-completion cost)
Total facilities1 cost: US$ 110M
Opex field life 2
Less than US$ 0.30/1,000 cubic feet
Notes:1 Facilities cost includes: gathering system (lines and manifolds), a production facility for dry gas and a very short pipeline2 Includes operating and maintenance of production facilities, lines, gas pipelines and wells
Production Targets
37
OGX Production Targets OGX Offshore Equipment Demand
FP
SO 19 units
12 units for Campos Basin discoveries
TLW
PW
HP
5 unitsexpected to be used in theEspírito Santo Basin (the only deep water blocks in OGX’s portfolio)
24 units 11 units for Campos Basin discoveries
Portfolio potential of 10.8 bn of recoverable boe: >10 years of production growth
Campos and Parnaíba discoveries (4.2 bn boe) can support 730,000 boepd of production level
Additional potential resources (6.6 bn boe) would allow OGX to reach and sustain a plateau of 1.4 million boepd from 2019 and beyond
In kboepd
Expected demand of 48 offshore units
Total of 23 units estimated for OGX’s Campos Basin discoveries (12 FPSOs and 11 WHPs)
Strategy to expedite development with production equipment contracted 2-3 years in advance
Campos and Parnaíba discoveries development
2050
165
730
1,380
Long-lead offshore production items already secured (OSX-1, OSX-2 and OSX-3; WHP-1 and WHP-2)
2011 2012 2013 2015 2019
Financial Overview
Strong Cash Position
39
Solid cash position of R$6.7 billion, or US$3.6 billion, to
support exploration commitments, development and
initial production
-US$2.5 billion invested in offshore deposits
-US$465 million hedged through NDF (non deliverable
forward) contracts
- ~80% of total cash protected against FX variations
Operating Cash Flow (4Q11-4Q13): US$ 0.5-1.0 bn
Capex (4Q11-4Q13): US$ 3.5-4.0 bn
Cash allocated in R$: Average cumulative gross
return equivalent to approximately 103.4% of the
Interbank Deposit Rate (CDI), or 13% p.a., generating
R$79.0 million of interest income for the period
Cash Allocated in US$: Average cumulative gross
return equivalent to approximately 1.4% p.a.,
generating US$8.5 million of interest income for the
period
Cash position in fixed income instruments allocated to
Brazil’s most solid financial institutions
Allocation by InstitutionR$ billion US$ billion
Cash Position Evolution Cash Allocation
2Q11 JUL AUG SEP0.0
2.0
4.0
6.0
0.0
2.0
4.0
6.0
Cash in R$
Bradesco37%
Itau Unibanco36%
BTG Pactual8%
Santander8%
Votorantim5%
CS4%
Others3%
Appendix
Ongoing Activities
41
1OGX Maranhão has 70% W.I
Well Block Accumulation Rig Coast
Distance Water Depth Status Net Pay
AY OGX-60HP BM-C-41 Waimea – 2D Pride Venezuela 84 Km 132m In progress since 08/22
BH OGX-63 BM-S-57 Fortaleza Ocean Quest 102Km 155m In progress since 10/08
BG OGX-64DP BM-C-40 Ingá – 1DP Ocean Lexington 93Km 105m In progress since 10/12Santonian: 23m
BL OGX-67 BM-C-40 Ingá - 2Ocean
Ambassador 93 Km 111m In progress since 11/04
BM PERN-1 BM-ES-37 Moriche Ocean Star 52km 1,148m In progress since 11/06
BN GVR-3D PN-T-68 Gavião Real QG-1 Onshore Block In progress since 11/22
BI OGX-68HP BM-C-41 Waimea – 4HP ENSCO 5002 83Km 135m In progress since 11/24
BO GVR-2D PN-T-68 Gavião Real BCH-05 Onshore Block In progress since 11/26
OGX Blocks Oil & Gas Fields
Parnaíba BasinCampos Basin Santos Basin Espírito Santo Basin
Concluded Wells (1 of 3)Concluded Wells (1 of 5)
42
Well Block Accumulation Rig Coast DistanceWater Depth Net Pay
A 1- MRK - 2B BM-S-29 Abacate Sovereign Explorer 130 km 100 m Oil &Gas shows
B OGX-1 BM-C-43 Vesuvio Ocean Ambassador 85 km 140 m Eocene: 57m
J OGX-9D BM-C-41Vesúvio
Direcional Ocean Ambassador 87 km 142 m Eocene: 60m
N OGX-13 BM-C-41 Vesúvio Vertical Ocean Lexington 87 Km 138m Eocene: 10m
C OGX-2A BM-C-41 Pipeline Ocean Ambassador 77 km 130 m
Eocene: ShowsCretac.: ShowsAlbian: 100mAptian: 50mBarremian: 15m
G OGX-6 BM-C-41 Etna Ocean Quest 82 km 137 m Albian: 74mAptian: 17m
D OGX-3 BM-C-41 Waimea Sea Explorer 83 km 130 m Albian: 80mApt./Barrem: 50m
I OGX-8 BM-C-41 Fuji Ocean Star 82 km 125 m Albian: 43mAptian: 44m
E OGX-4 BM-C-42 Kilawea Ocean Quest 79 km 150 m Eocene: 17m
F OGX-5 BM-C-43 Krakatoa Ocean Ambassador 79 km 145 mMaastric.: ShowsAlbian: 30mAptian: 20m
H OGX-7A BM-C-42 Huna Ocean Lexington 86 km 152 m Albian: >17mAptian: 35m
K OGX-10 BM-C-42 Hawaii Sea Explorer 79 km 158 mCenomanian: 11mAlbian: >13m Aptian: 40m
L OGX-11D BM-S-59 Natal Ocean Quest 84 km 180m Santonian: 75m
M OGX-12 BM-S-57 Niterói Ocean Star 95 Km 150m -
O OGX-14 BM-C-40 Peró Ocean Lexington 96 Km 104m Albian: 35m & 27m
P OGX-15 BM-C-41 Santa Helena Ocean Ambassador 78km 130m Albian: 32mAptian: 31m
Concluded Wells (2 of 5)
43
Well Block Accumulation Rig Coast DistanceWater Depth Net Pay
Q OGX-16 PN-T-681 California QG-1 Onshore Block Devonian: Gas shows, 23m & 25m (column)
R OGX-17 BM-S-56 Belém Ocean Star 85 Km 136m Albian: 43m
S OGX-18 BM-C-40 Ingá Ocean Lexington 95 Km 105mSantonian: Oil showsAlbian: 12m (Oil column)
T OGX-19 BM-S-58 Aracaju Ocean Quest 112 Km 172m Santonian: 40m
U OGX-20 BM-C-41 TupungatoOcean
Ambassador 84 Km 132mMaastrichtian: 9m & 3mAlbian: 50mAptian: 42m
V OGX-21D BM-C-41Waimea
Direcional Sea Explorer 84 Km 134m Albian: 14m
W OGX-22 PN-T-681 Fazenda São José QG-1 Onshore Block Upper Devonian: 49m Lower Devonian: 47m
X OGX-23 BM-S-58 Ilhéus Ocean Quest 107 Km 152m -
Y OGX-24 BM-S-56 Itagi Ocean Star 94 Km 140m -
Z MRK-3/ 4P BM-C-372 Carambola-A Blackford Dolphin 74 Km 134mSantonian: 14mAlbian: 43mAptian: 12m
AA OGX-25/ 27P BM-C-39 Waikiki Pride Venezuela 94 Km 105mEocene: 8m (gas)Albian-cenomanian: 145m
V OGX-26HP BM-C-41 Waimea Horizontal
Sea Explorer 84 Km 134m Albian: 1,000m (horizontal section)
AB OGX-28D BM-C-41 Illimani Ocean Star 80 Km 126m Albian: 24m
AC OGX-29/ 32 BM-C-39 Itaipu Ocean Lexington 86 Km 104m Oil shows
AE OGX-31 BM-C-41 Osorno Ocean Ambassador
79 Km 136m Albian: 48mAptian: 23m
Concluded Wells (3 of 5)
44
Well Block Accumulation RigCoast
DistanceWater Depth Net Pay
AJ OGX-36D BM-C-41 Pipeline D Ocean Star 77 Km 128m Albian: 60m
AH OGX-35 BM-C-39Waikiki
Direcional Ocean Lexington 89 Km 104m Albian-Cenomanian: 80m
AG MRK-5 BM-C-37 2 Carambola B Blackford Dolphin 80 Km 130m Albian: 17m
AF OGX-33 BM-C-41 Chimborazo Pride Venezuela 84 Km 127m Albian: 42m
AK OGX-37 BM-C-43 PotosiOcean
Ambassador 87 Km 140m Oil Shows
AO OGX-41D BM-C-39 / BM-C-40
Waikiki - 2 D Ocean Lexington 90 Km 110m Albian: 92m
AN OGX-40D BM-C-41 Pipeline - 2 D Sea Explorer 79 Km 130m Albian: 107m
AD OGX-30 BM-S-58 Salvador Ocean Quest 105 Km 151m Albian: 50m
AI OGX-34 PN-T-68 1 Bom Jesus QG-1 Onshore Block Devonian: 23m
AQ OGX-43D BM-C-41 Illimani -1 D Ocean Ambassador
80 km 140 m Albian: 50m
AO OGX-44HP BM-C-39/ BM-C- 40
Waikiki Ocean Lexington 90 Km 110mAlbian-Cenomanian: 1,063m (horizontal section)
AL OGX-38 PN-T-68 1 Fazenda São José
BCH-05 Onshore Block Devonian: 43m
AS OGX-46D PN-T-68 1 Califórnia - D QG-1 Onshore Block Devonian: 15m
AU OGX-48 BM-C-41 Pipeline - 4 Ocean Ambassador
75 Km 128m Albian: 12m
AP OGX-42D BM-C-41 Pipeline -3 D Pride Venezuela 78 km 120mEocene: 6mAlbian: 82m
AW OGX-50D BM-C-41 Waimea – 3 D Sea Explorer 84 Km 131mSantonian: 1.7mAlbian: 52m
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator
Concluded Wells (4 of 5)
45
Well Block Accumulation RigCoast
DistanceWater Depth Net Pay
AR OGX-45D BM-C-40 Waikiki – 3 D Ocean Lexington 96 Km 109m Maastrichtian: 5m
AM OGX-39HP BM-C-41 Pipeline
Horizontal Ocean Star 77 Km 128m Albian: 1,000m (horizontal section)
AX OGX-52 BM-C-41 Tambora Ocean
Ambassador93 Km 128m
Santonian: 5m
Albian: 96m
AS OGX-51DP PN-T-68 Califórnia - 2
DP QG-1 Onshore Block Devonian: 8m
AV OGX-49 PN-T-68 Fazenda São
José BCH-05 Onshore Block -
AY OGX-53D BM-C-41 Waimea – 2D Pride Venezuela 84 Km 132m Albian: 71m
BB OGX-57 PN-T-68 Fazenda São
José - 2 QG-1 Onshore Block -
AT OGX-47 BM-S- 59 Maceió Ocean Quest 110Km 185m Santonian: 51m
AZ OGX-54 BM-C-41 Fuji - 2 Ocean Lexington 81Km 136m Albian: 24
BC OGX-58DP BM-C-41 Tambora Ocean
Ambassador93Km 128m -
BA OGX-56D BM-C-41 Fuji – 1D Ocean Star 77Km 128m Albian: 60m
BD OGX-59 PN-T-49 Fazenda Torrão BCH-05 Onshore Block Devonian: 9m
BG OGX-62 BM-C-40 Ingá - 1 Ocean Lexington 93Km 105m Albian-Cenomanian: 20mSantonian: 26m
AW OGX-55HP BM-C-41 Waimea – 3HP Sea Explorer 84Km 131m Albian: >1,000m (horizontal section)
BE GVR-1D PN-T-68 Gavião Real QG-1 Onshore Block Development Well
BF OGX-61 BM-C-41 Illimani – 2Ocean
Ambassador87 Km 124m Albian: 9m
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator
Concluded Wells (5 of 5)
46
Well Block Accumulation RigCoast
DistanceWater Depth Net Pay
BJ OGX-66 PN-T-67 Angical BCH-05 Onshore Block -
BI OGX-65D BM-C-41 Waimea – 4D ENSCO 5002 83km 135m Albian: 97m
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator
Campos Basin: Typical Production Project
47
Typical Replicable Project Assumptions Campos Basin Distance from shore: 80 km Water depth: 100 to 150 meters Recoverable volume: 500 million bbl (low Gas:Oil Ratio (GOR)): all gas produced will be used for power
generation or gas reinjection, if applicable Equipment oil producing capacity:
— 1 FPSO: 100 Kbblpd— 1 WHP: 30 wells
Drilled wells: 16 horizontal production wells and 9 injection wells— 5 horizontal production wells pre-drilled from semi-submersible rig— 11 production and 9 injection wells drilled from WHP
Capex: estimated unit cost of approximately US$ 2 / barrel— Pre-drilled wells = US$ 50M (75 days per well)— WHP drilled wells = US$ 20M (75 days per well)— Well completion = US$ 15M (30 days per well)— Package of sub-sea flow lines = US$ 65M
Opex: estimated unit cost lower than US$ 16 / barrel— Leased equipment day rates with high local content (FPSOs US$ 350k / day & WHPs US$ 160k /day)— Operating and maintenance expenditures of US$ 85k / day— Variable operating costs of US$ 3.5 / barrel— Abandonment costs at end of field life of US$ 100M
Production profile:— Achieve production plateau in 3 quarters— Plateau maintained for an additional 4 years — 20 to 22 years of production decline from the plateau thereafter
TPPs
TPP Maranhão III
Parnaíba Basin: Gas Sale Contract with MPX
48
Revenue Schematic
Contract Conditions:
The contract should provide a 15% ROE for the TPP (Thermal Power Plant)
Gas producers should receive “remaining” revenue, guaranteeing extraordinary margins (“net
back”)
— $ Fixed revenue (gas plant rental)
— $ Variable revenue (varies according to plant’s
dispatch)
(OGX Maranhão and Petra)
$
$
$
(by Jan/1420 year contract50% take-or-pay)
(by Jan/1315 year contract0% take-or-pay)
(MPX and Petra)
TPPMaranhão
IV + V
Future Projects
Gas Producers
