Brazil OGX Shares Soar On Santos Basin Discovery, First Oil, up 5.0% at 14.87 Brazilian reais ($8.30) in late afternoon trade on the Sao Paulo Stock Exchange.
Brazil OGX Shares Soar On Santos Basin Discovery, First Oil,
RIO DE JANEIRO (Dow Jones)--Shares of Brazilian oil and gas company OGX Petroleo e Gas Participacoes SA (OGXP3.BR, OGXPY) soared Monday after the company announced a discovery in the shallow waters of the Santos Basin and as the independent driller closes in on its first oil production.
OGX shares were up 5.0% at 14.87 Brazilian reais ($8.30) in late afternoon trade on the Sao Paulo Stock Exchange.
Brazilian news magazine Veja reported on its website that the discovery holds an estimated 2 billion barrels of crude. OGX declined to comment on the report, with the company's press office saying that it had no additional information about the find.
In a statement to local stock regulators, OGX said that it found an oil column of about 1,000 meters with net pay, or reservoir thickness, of 110 meters (360 feet). More important, the discovery sits in shallow waters about 102 kilometers (63 miles) off the coast of Brazil. That is about two-thirds closer to land than the ultradeepwater presalt discoveries made in the Santos Basin.
OGX, which is technically still in a pre-operational phase, is also closing in on its first crude oil production. The first oil from the Waimea field in the offshore Campos Basin is still expected on Jan. 28, an OGX spokeswoman said in an email.
-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com |
