OREANDA-NEWS. June 7, 2011. OGX Petroleo e Gas, the Brazilian oil and gas company responsible for the largest private sector exploratory campaign in Brazil, announced that it has presented to the National Petroleum Agency (“ANP”), through its subsidiary OGX Maranhao Petroleo e Gas Ltda., declarations of commerciality for the California and Fazenda Sao Jose accumulations discovered in the PN-T-68 block within the Parnaiba Basin.

"These declarations of commerciality in the Parnaiba Basin represent a milestone in the company’s

development in a new exploratory frontier only 20 months after the acquisition of the concessions. With this declaration, we have taken an important step towards production", stated Paulo Mendonca, General Executive Officer and Exploration Officer for OGX.

OGX has presented to the ANP the declarations of commerciality for the California accumulation, which the new proposed designation is Gaviao Azul Field and for the Fazenda Sao Jose accumulation that is expected to be designated as the Gaviao Real Field, following the Agency’s approval. The development plans for the fields were properly submitted to ANP’s approval by OGX and are still under analysis.

Additionally, the company announced that it has identified the presence of hydrocarbons in wells 1-OGX-34-MA and 3-OGX-38-MA, both in the PN-T-68 block within the Parnaiba Basin. The OGX-34 well, a wildcat well in the Bom Jesus prospect, discovered a net pay of 23 meters of gas in two intervals, within the Poti and Cabecas formation, which is the third accumulation the company has discovered in the region. The OGX-38 well, the first appraisal well in the Fazenda Sao Jose accumulation which was discovered by the OGX-22 wildcat well, encountered a net pay of 43 meters of gas in the Poti

formation, surpassing initial volume expectations for this accumulation. The exploration of this well is

ongoing.

The California and Fazenda Sao Jose accumulations will be OGX’s first natural gas fields. The company

estimates that these fields will reach a production of 5.7 million m? per day by 2013, which will correspond to a total production of 1.1 Tcf of gas. The natural gas to be produced in this region will be preferentially provided to the power plants to be constructed by MPX Energia S.A., an EBX group company, in association with Petra Energia S.A., both of whom are partners of OGX in the PN-T-68 block. MPX has already acquired the site to construct a power plant in the PN-T-68 block and has also obtained

an installation license for 1,863 MW, which was granted by the Secretaria Estadual do Meio Ambiente do

Estado do Maranhao. In addition, MPX has initiated the environmental licensing process for the

development of an additional 1,859 MW in the region.