OGX declares two Parnaiba fields commercial

HOUSTON, May 17 -- OGX SA, Rio de Janeiro, has declared commercial the California and Fazenda Sao Jose accumulations discovered on the PN-T-68 block in northeastern Brazil’s onshore Parnaiba basin.

The two fields are expected to reach output of 201 MMcfd of natural gas by 2013 to be preferentially provided to power plants to be built by MPX Energia SA, an EBX group company, in association with Petra Energia SA, both of whom are partners of OGX on the PN-T-68 block.

OGX said it has identified the presence of hydrocarbons in the 1-OGX-34-MA and 3-OGX-38-MA wells on the same block 260 km southwest of Sao Luis (OGJ Online, Sept. 2, 2010).

The OGX-34 well, on the Bom Jesus prospect, discovered 23 m of net gas pay in the Devonian Poti and Cabecas formations. The OGX-38 well, the first Fazenda Sao Jose appraisal well, encountered 43 m of net gas pay in Poti and is still drilling.

OGX, which obtained the Parnaiba concessions 20 months ago, said Gaviao Azul (California) and Gaviao Real (Fazenda Sao Jose) will be the company’s first gas fields. Brazil’s ANP is analyzing OGX’s development plans.

MPX has acquired the site to build a power plant on the PN-T-68 block and has obtained an installation license for 1,863 Mw. MPX has initiated the environmental licensing process for the development of an additional 1,859 Mw in the region.

OGX Maranhao Petroleo e Gas Ltda., an entity controlled by OGX SA 66.6% and MPX Energia SA 33.3%, is block operator with 70% interest, and Petra Energia SA owns 30%.