OGX 2012 Third Quarter Results

  OGX2012 Third Quarter Results

                       *Production advancing on schedule
  *First revenues booked: R$150.7 million

Business Wire

RIO DE JANEIRO -- November 08, 2012

OGX Petróleo e Gás Participações S.A. (Bovespa: OGXP3), Brazil’s largest
private oil and natural gas exploration company, announces its third quarter
results for 2012.

GTU Process Plant View

GTU Process Plant View


Key Financial Metrics                    3Q 2012      YTD 2012
Revenues (R$ mm)                         150.7        150.7
EBITDA – Pro forma¹ (R$ mm)              (51.6)       (305.1)
Net Profit (Loss) (R$ mm)                (343.6)      (887.1)
Realized oil price per barrel (US$)²     95           95
CAPEX (R$ mm)                            (1,115)      (3,186)
Production volume (kboepd)               9.3          9.7 ³

Notes:
¹ Considers OGX Campos
² Refers to the cargo booked as revenues (delivered on July 26, 2012)
³ Production volume from January 31, 2012 to September 30, 2012


Luiz Carneiro, Chief Executive Officer of OGX, said: “OGX reached a new and
important milestone in the third quarter, posting revenues from the sale of
approximately 800,000 barrels for the first time since the company began
commercial production. We are pleased to note that we have achieved this
milestone, and, besides that we obtained an 80% success rate in our
exploratory and appraisal campaign since the beginning of the year.”

“Production is progressing well and is on schedule in the Campos Basin, and a
third production well in the Tubarão Azul Field will be connected in the
coming weeks. In exploration, we began drilling new prospects in the Campos
Basin where we continue to have strong expectations for our activities. In
addition, we are continuing to develop the Tubarão Martelo Field, in the
Campos Basin, and the Gavião Real Field project in the Parnaíba Basin where we
expect to begin commercial gas production in early 2013. We expect to invest
about US$1.2 billion towards capital expenditures in 2013 to continue
delivering on our potential in both exploration and production,” Carneiro
continued.

KEY HIGHLIGHTS

Production:

OGX’s production activities are progressing according to schedule.

  *Attained total production volume of 856,800 boe in 3Q12 in the Tubarão
    Azul Field (Campos Basin)
  *Drilled three production wells in the Tubarão Martelo Field (Campos
    Basin), projected to come on-stream late 2013 after the arrival of FPSO
    OSX-3
  *Third production well in the Tubarão Azul Field, TBAZ-1HP, under
    completion and to be connected to the FPSO OSX-1 in the coming weeks
  *Final stage of reservoir engineering for FPSO OSX-2 installation, with
    delivery scheduled for 2H13
  *All the production wells in the Gavião Real Field, in the Parnaíba Basin,
    have been drilled and are in the process of completion and connection to
    the Gas Treatment Unit (GTU). Commercial production is scheduled to begin
    in early 2013
  *Sale of approximately 800,000 barrels of oil, in October, to Reliance
    Industries Ltd.

Exploration:

OGX continued its successful exploratory campaign in the third quarter.

  *Receipt of environmental authorization from the Brazilian Environmental
    and Natural Renewable Resources Institute (IBAMA) to drill in the BM-C-37
    and BM-C-38 blocks in the Campos Basin
  *New important discoveries of hydrocarbons in the Bom Jesus accumulation in
    the Parnaíba Basin
  *Submitted the winning bid for a block in the Lower Magdalena Valley Basin
    upon participating in Colombia’s 2012 National Agency of Hydrocarbonates
    (ANH)
  *Obtained Operator A qualification from Brazil's National Petroleum Agency
    (ANP), allowing OGX to operate blocks in deep waters and ultra-deep
    waters, in addition to shallow waters and onshore

Other:

  *In October, Eike Batista, controlling shareholder of OGX, granted the
    Company an option to require him to purchase up to US$1.0 billion of new
    common shares of OGX at a price of R$6.30 per share, conditional upon the
    Company’s additional capital requirement and the absence of more favorable
    alternatives

2013 OUTLOOK

Besides the increased focus on its production campaign, OGX has interesting
prospects to be drilled in the coming months.

Drilling of exploratory wells

  *Campos Basin: 5-6 wells in the BM-C-37 and BM-C-38 blocks (1-2 wells to be
    initiated in 2012)


                             Total                            OGX
                             Estimated                        Estimated
                                               Working                          Spud
Prospect    Block      Recoverable    Interest    Recoverable    date
                             Volume                           Volume

                             (P[Mean])                        (P[Mean])
Cozumel     BM-C-37    209-270        70%         146-189        4Q12
                             mmboe                            mmboe
Tulum          BM-C-37       194-280           70%            136-196           4Q12
                             mmboe                            mmboe
Cancun         BM-C-37       184-294           70%            129-206           1Q13
                             mmboe                            mmboe
Viedma         BM-C-38       245-313           70%            172-219           1Q13
                             mmboe                            mmboe
Cotopaxi    BM-C-38    30-40 mmboe    70%         21-28 mmboe    1Q13
Total       -          861-1,196      70%         603-837 mm     -
                             mm boe                           boe


  *Santos Basin: 1 well until the concession for exploration ends in March
    2013
  *Parnaíba Basin: 10 wells
  *Espírito Santo Basin: 3 wells, together with Perenco, the operator of the
    blocks
  *Updated certification of estimated reserves and resources

Capex

  *2013 Annual estimate: US$1.2 billion

With the end of the exploratory concession periods for the Campos and Santos
Basins approaching, the Company is gradually downsizing its rig fleet to
accommodate a transition from the exploration campaign to the production phase
in these basins, resulting in a reduction of its capex for 2013.

FINANCIAL HIGHLIGHTS

Expenses

OGX spent US$588 million in the third quarter. Compared to the previous
quarter, the Company had a slight increase given expenditures in its onshore
operations (GTU final assembly and two additional rigs) and in the development
of Tubarão Martelo and Tubarão Azul fields. The Company has begun to optimize
and rationalize its expenses, mainly in exploration, while it moves towards
the development phase. At the end of September, the Company returned one of
its offshore rigs, which should impact the exploration capex in the first
quarter of 2013.

Cash position

OGX maintains a solid cash position of approximately US$2.5 billion.
Considering the fourth quarter operations, OGX expects to end 2012 with a cash
position of approximately US$1.8–1.9 billion.

CAMPOS BASIN

  *Extended Well Test concluded in the Tubarão Azul Field (OGX-26HP)
  *Total production of 856,800 boe in the quarter
  *Delivery of one shipment of approximately 800,000 barrels to Shell in July
  *Delivery of one shipment of approximately 800,000 barrels to Reliance
    Industries in October
  *Receipt of environmental authorization from IBAMA to start drilling in the
    BM-C-37 and BM-C-38 blocks of the Campos Basin
  *Commencement of drilling in Cozumel prospect, BM-C-37 block

Tubarão Azul Field Development

Since commencing production on January 31, the Tubarão Azul Field has produced
more than 2.5 million barrels of oil and delivered four shipments. Average
daily production in the nine months of production from January 31 to October
31 was 9.7 kboepd, and, this quarter alone, average daily production was 9.3
kboepd. FPSO OSX-1 continues to perform very well, with an average operating
efficiency of 98.5% since first oil.

The OGX-26HP well was reconnected to FPSO OSX-1 during the first week of
August, after having been closed for slightly over a month to allow for the
replacement of the centrifugal submersible pump. Since then, the two
production wells, OGX-26HP and OGX-68HP, have again been producing in line
with expectations with stable flows rates of above 5.0 kboepd on average per
well.

The third production well in the field, TBAZ-1HP, is under completion and will
begin connection to FPSO OSX-1 in the coming weeks. It is expected to come
on-stream at the beginning of December.

The average daily production in October amongst all wells in the Tubarao Azul
Field was 10.3 kboepd, which is in line with previous months.

In July, OGX made the final shipment delivery of approximately 800,000 barrels
under the Company’s first sales contract with Shell, marking the commencement
of the Company’s revenues generation after the declaration of commerciality in
the Tubarão Azul Field, resulting in sales revenues of R$150.7 million.

On October 15, following the declaration of commerciality and the conclusion
of the Extended Well Test (EWT), the fourth shipment of approximately 800,000
barrels was delivered to Reliance Industries Ltd., one of the world's largest
refineries and India's largest private company.

The table below shows the pro-forma OSX-1 EBITDA after the delivery of the
first shipments:


Delivered       1st ^1       2nd ^1      3rd ^2       4th ^ 3      Total
cargos
Delivery            03/28/2012     4/21/2012     07/26/2012     10/15/2012
Date
Operation           51 days        27 days       98 days        80 days
Period
                                                                               
Production
related to
the
shipments -     547,376      246,809     789,774      809,495      2,393,454

in barrels
(bbls)
                                                                               
R$ ('000)
Net Revenue         118,003        55,996        150,686        169,145        493,830
                                                                               
Sales Taxes     -            -           -            -            -
Royalties       (10,687)     (4,938)     (14,842)     (15,772)     (46,239)
Leasing         (24,078)     (13,222)    (52,708)     (41,998)     (132,006)
OSX             (13,944)     (7,236)     (28,071)     (22,499)     (71,750)
Services
Logistics       (12,005)     (7,410)     (27,795)     (18,405)     (65,615)
Others          (871)        36          (1,183)      (1,529)      (3,547)
                                                                               
EBITDA              56,418         23,226        26,087         68,942         174,673
                                                                               
% EBITDA /          47.81%         41.48%        17.31%         40.76%         35.37%
Net Revenue
EBITDA /
barrel -        103.07       94.11       33.03        85.17        72.98
(R$/barrel)

Notes:
^1 Sales occurred during the Extended Well Test and before the declaration of
commerciality - not accounted in Results and recorded as a reduction of "Fixed
Assets"
^2 Sale occurred after the Extended Well Test and declaration of commerciality
- recorded as net revenues
^3 Sale occurred after the Extended Well Test and declaration of commerciality
- recorded as net revenues. Net figure of expenses associated with the sale of
freight costs


As shown in the table above, the delivery of the third cargo presented an
EBITDA / barrel relatively lower than the first and second cargos due to: i)
lower production during the 98-day production period resulting from the need
to close the OGX-26HP well for just over a month to allow for the replacement
of the centrifugal submersible pump; ii) lower revenue (discount already
applied) resulting from a decrease in oil prices (Brent) from USD 122 per
barrel at the time of the first cargo to USD 95 per barrel at the time of the
third cargo; iii) an increase in costs resulting from currency fluctuations
upon the devaluation of the exchange rate by 14% rate from March 28 to July
26; and iv) an increase in logistics costs (boats and fuel) resulting from the
IBAMA requirement to use support boats, which did not exist at the time of the
first and second cargos.

In the fourth cargo, with production of the two wells stabilized and a better
realized oil price, profitability of the operation improved.

The following table demonstrates the effective daily rates (in USD) of each of
the costs associated with the FPSO OSX-1 operation:


Daily             1st           2nd           3rd           4th
Cost (USD     cargo     cargo     cargo     cargo     Average
'000)
                                                 
Leasing       (268)     (262)     (268)     (259)     (264)
OSX           (155)     (143)     (143)     (139)     (144)
Services
Logistics     (134)     (147)     (141)     (113)     (131)
Others        (10)      1         (6)       (9)       (7)
                                                 
Total         (567)     (551)     (557)     (520)     (546)


Tubarão Martelo Field Development

Following the declaration of commerciality of the field and OGX’s submission
of a Development Plan, ANP granted the Company authorization to begin drilling
the production wells in this field. OGX is now concluding the drilling and
completing the 3 horizontal production wells (TBMT-2HP, TBMT-4HP and
TBMT-6HP). We expect these wells to be connected to FPSO OSX-3, which is
scheduled to arrive by 3Q13. The Tubarão Martelo Field is scheduled to come
on-stream by 4Q13.

It is important to note that during last week we are performing a production
test of the TBMT-2HP well and so far the results within expectations.

Campos Basin Exploration Campaign

On October 5, OGX obtained environmental authorization from IBAMA to begin
drilling in the BM-C-37 and BM-C-38 blocks. This authorization will allow the
Company to advance its exploratory campaign in this very promising region,
where it plans to apply the expertise of its technical team and two of its
rigs to continue drilling wildcat and appraisal wells.

Below we highlight results obtained in the third quarter:

Villarrica: We have concluded drilling the wildcat well in the accumulation,
OGX-87, and identified 8 meters of net pay in the Maastrichtian section and 2
meters in the Paleocene section.

Fuji: We have finished drilling the fourth appraisal well of the accumulation,
OGX-90D, where we discovered 2 meters of net pay in the Albian section.

Cozumel: We have commenced drilling the wildcat well of the accumulation,
OGX-99, which is still in progress.

PARNAÍBA BASIN

  *Receipt of Operating License to begin production of natural gas
  *2 important discoveries of hydrocarbons in the Bom Jesus accumulation
  *Commenced drilling 5 exploratory wildcat wells

Development of the Gavião Real and Gavião Azul fields

Development of Gavião Real Field project is on schedule and has progressed
substantially in recent months, with two rigs focused on production
development. The drilling of all 16 production wells planned for this phase of
the project has already been concluded, of which 11 have already been
completed and the remaining 5 are in the process of completion and connection
to the GTU. We also concluded the drilling of the first water disposal well,
GVR-15D, which will work in conjunction with the second disposal well
(GVR-16D), in drilling progress.

The 11 wells already completed have been tested with open choke (3/4") and
showed average flow rates of 400,000 - 500,000 m3/day each.

In addition, at the end of September, we obtained the Operating License from
the Environmental and Natural Resources Secretary of the State of Maranhão
(SEMA/MA) authorizing production of natural gas in the Gavião Real and Gavião
Azul fields.

The project is in its final stages as described by the current activities at
the site: i) mechanical and instrument assembly, electrical wiring and
instrumentation; ii) test of control networks in the clusters and the GTU;
iii) pipelines in place; iv) construction of the administrative buildings with
offices, workshop and laboratories, all in pre-fabricated metallic structures;
and v) leakage tests in the tanks in final phase.

Natural gas production at the Gavião Real Field will begin in the fourth
quarter of this year, with the commissioning of the GTU and the MPX Parnaíba
Thermoelectric Complex turbines. Commercial generation of power will begin in
2013.

Parnaíba Basin Exploratory Campaign

After the discovery of the Bom Jesus accumulation last year, identified
through the OGX-34 well, the Company drilled appraisal wells to test the
extent of this accumulation. In addition to the drilling and well test of the
OGX-88 well in July, we also concluded the drilling of another two appraisal
wells in the region in 3Q12, OGX-91D and OGX-95, both of which contained
discoveries of hydrocarbons in the Carboniferous section of 23 and 4 meters of
net pay, respectively. After the evaluation of the results from the wells, OGX
submitted the Discovery Evaluation Plan (PAD) for the region to the ANP, which
has already been approved.

We have initiated the drilling of five new prospects in this basin – Santa
Maria (OGX-92), Rio Corda (OGX-93), Peritoró (OGX-96), Basílios (OGX-97) and
Norte California (OGX-98). The OGX-92 and OGX-93 wells were concluded in the
Fazenda Santa Maria and Rio Corda prospects; however, neither well showed
indications of hydrocarbons. Currently, 3 exploratory wells are still in
progress - the first exploratory well in the PN-T-50 block in the Peritoró
prospect, OGX-96, OGX-97 in the Basílios prospect and OGX-98 in the Norte
California prospect.

SANTOS BASIN

In the quarter, we finished drilling the OGX-89D appraisal well of the Natal
accumulation, where we discovered 7 meters of net pay in the Santonian
section, proving the extension of the accumulation.

We also concluded the drilling of the OGX-85 well, where we have confirmed
microbiolite limestone with presence of gas and light oil, identified in
sandstone and volcanic rocks, as reported to the ANP. The Company is still
analyzing the economic viability of this discovery.

Finally, we are currently drilling the OGX-94DA well, in the Curitiba
accumulation, where we have already discovered 32 meters of net pay in the
Santonian/Campanian section. The drilling is still in progress aiming for the
Albian section and we expect to have more information in the coming weeks.

Going forward, OGX will go through the assessment of the full set of data from
the Santos Basin to define the ring fence of potential fields and the
development plan for the area.

In September, we returned the BM-S-29 exploratory block, in which OGX had a
100% stake, to the ANP. After the conclusion of the Discovery Evaluation Plan
(PAD) period for this area, the Company decided not to continue its
development.

OTHER BASINS

Espírito Santo Basin

Although we did not drill in this basin in 3Q12, we plan to resume our
exploration campaign before the end of the exploration period in October 2014
with drilling in the southern blocks of the basin (BM-ES-39, BM-ES-40 and
BM-ES-41), considered a new and promising area for oil and natural gas.

Also, in October, we returned the BM-ES-38 exploratory block, in which OGX had
a 50% stake, to the ANP after having analyzed the results obtained in the
block.

Colombia

This quarter, OGX finalized the acquisition of 2D and 3D seismic data in the
Lower Magdalena Valley Basin (VIM-5 block), and plans to commence drilling the
first exploration well in Colombia in 2013. Also, in October, we participated
in Colombia’s 2012 ANH Round, and had the winning bid for another block in the
Lower Magdalena Valley Basin, VIM-19, only waiting for ANH’s confirmation.

OTHER OGX HIGHLIGHTS

Exploration and Development Equipment

In accordance with our plan to gradually return our drilling rigs as a part of
our transition to a production-focused campaign in the Campos and Santos
Basins, in September, we returned the Ocean Ambassador rig upon completion of
the drilling of the TMBT-4HP well and the expiration of our contract with
Diamond Offshore.

Operator A Qualification

In October, OGX obtained qualification of Operator A from the ANP, allowing
the Company to operate blocks located in deepwaters and ultra-deepwaters, in
addition to shallow waters and onshore, where Operator B already operates.

Controlling Shareholder Put Option

On October 24, OGX’s controlling shareholder, Eike Batista, granted the
Company the right to demand his subscription of up to US$1.0 billion new
common shares of OGX at a price of R$6.30 per share (the “Option”). The
Option, which expires after April 30, 2014, is conditional upon the Company’s
additional capital requirement and the absence of more favorable alternatives,
which will be determined by the majority of the independent board members on
the Company´s Board of Directors.

The option reflects Mr. Batista’s confidence in the technical expertise and
quality assets of the Company, as well as the new opportunities that the oil
and gas industry offers to OGX.

People Management

OGX closed 3Q12 with 382 employees and 6,111 third party service providers
responsible for conducting all administrative, exploration and oil production
activities, up approximately 6% over the same period of the previous year. In
addition to our strategy of contracting internationally respected suppliers to
conduct operating activities, we maintain a high-performance, streamlined
structure focused on managerial excellence. Our team is composed of
professionals with broad experience in the oil and gas sector, in addition to
young professionals with great potential, educated at the country’s leading
universities.

UPCOMING EVENTS

OGX has several important events planned for the coming months, including:

  *Connection of the third production well in the Tubarão Azul Field
  *Beginning of GTU commissioning and gas production in the Parnaíba Basin
  *Results of tests and drilling in the Santos Basin
  *Drilling important prospects in blocks BM-C-37 and BM-C-38 in the Campos
    Basin
  *Continuation of the exploration and wildcat campaigns in the Santos,
    Parnaíba and Espírito Santo basins

FINANCIALS

The financial and operational data below is presented on a consolidated basis,
in accordance with the International Financial Reporting Standards (IFRS)
issued by the International Accounting Standards Board - IASB and, in reais
(R$), except where otherwise indicated.


                                                                                            R$ ('000)
INCOME STATEMENT            9M12              9M11            ∆                 3Q12            3Q11            ∆
                                                                                                                
Net revenue                 150,686           -               150,686           150,686         -               150,686
                                                                                                                
Cost of goods               (124,599)         -               (124,599)         (124,599)       -               (124,599)
sold (COGS) ^1
Exploration                 (172,567)         (125,157)       (47,410)          (36,231)        (50,175)        13,944
expenses
General and
administrative              (158,611)         (179,653)       21,042            (41,462)        (71,820)        30,358
expenses
                                                                                                                
EBITDA                      (305,091)         (304,810)       (281)             (51,606)        (121,995)       70,389
                                                                                                                
Depreciation                (14,665)          (3,039)         (11,626)          (11,574)        (1,210)         (10,364)
(part of COGS)
Amortization                (7,337)           (4,170)         (3,167)           (3,798)         (1,692)         (2,106)
(part of COGS)
Stock option                (47,291)          (22,477)        (24,814)          (41,701)        (4,131)         (37,570)
Dry/subcommercial           (460,235)         -               (460,235)         (294,712)       -               (294,712)
wells/areas
                                                                                                                
EBIT                        (834,619)         (334,496)       (500,123)         (403,391)       (129,028)       (274,363)
                                                                                                                
Financial revenue           222,237           345,749         (123,512)         60,146          102,823         (42,677)
Financial expense           (329,153)         (133,170)       (195,983)         (127,305)       (101,589)       (25,716)
Net financial               (106,916)         212,579         (319,495)         (67,159)        1,234           (68,393)
results
Currency exchange           (366,080)         (4,191)         (361,889)         (26,764)        (12,723)        (14,041)
Derivatives                 18,294            (81,815)        100,109           (4,205)         150,318         (154,523)
                                                                                                                
EBT                         (1,289,321)       (207,923)       (1,081,398)       (501,519)       9,801           (511,320)
                                                                                                                
(-) Income tax              389,151           30,625          358,526           157,900         (35,779)        193,679
                                                                                                                
Net profit (loss)
for the year- Pro           (900,170)         (177,298)       (722,872)         (343,619)       (25,978)        (317,641)
forma
                                                                                                                
OGX Campos Merger           13,102            -               13,102            -               -               -
                                                                                                                
Net profit (loss)
for the year-          (887,068)      (177,298)    (709,770)         (343,619)    (25,978)     (317,641)
Book value
                                                                                                                
Attributed to:
Non controlling             (21,306)          (17,167)        (4,139)           (288)           (8,488)         8,200
interests
Controlling            (865,762)      (160,131)    (705,631)         (343,331)    (17,490)     (325,841)
shareholders

Note:
^1 This balance does not include parts of COGS related to depreciation,
amortization and royalties that are disclosed in specific lines of the table
above


                                                                            R$ ('000)
BALANCE SHEET     Sep 30,        Dec 31,                                Sep 30,         Dec 31,
                  2012           2011                                   2012            2011
ASSETS                                        LIABILITIES AND                
                                                    EQUITY
Current                                             Current
assets                                              Liabilities
Cash and cash     5,058,579      5,367,451          Trade payables      755,296         431,931
equivalents
                                                    Taxes,
Marketable        3,443          52,290             contributions       15,830          26,070
securities                                          and profit
                                                    sharing payable
Escrow            14,758         39,039             Salaries and        44,701          54,507
deposits                                            payroll charges
Taxes and                                           Loans and
contributions     65,464         78,137             financings          138,738         22,301
recoverable
Derivative                                          Accounts
financial         25,295         8,879              payable to          109,055         96,692
instruments                                         related parties
Oil               105,448        -                  Other accounts      16,299          87,807
inventories                                         payable
Other credits     130,187        27,934
                                                                        1,079,919       719,308
                  5,403,174      5,573,730          Noncurrent
                                                    Liabilities
                                                    Loans and           7,908,034       4,750,113
                                                    financings
                                                    Provisions          155,217         11,743
                                                                                        
                                                                        8,063,251       4,761,856
                                                                                        
Noncurrent                                          Shareholders’
Assets                                              Equity
Inventories       230,827        390,071            Capital stock       8,821,134       8,810,307
Taxes and                                           Capital
contributions     154,321        278,810            reserves            185,242         274,109
recoverable
Deferred
income taxes      673,306        282,693            Earnings            97,737          -
and social                                          reserves
contributions
Credits with                                        Currency
related           176,278        139,386            translation         42,086          19,588
parties                                             adjustments
                                                    Retained
                                                    earnings            (1,168,308)     (289,444)
                                                    (deficit)
Fixed assets      9,019,065      6,172,783
                                                    Portion
                                                    attributed to       7,977,891       8,814,560
                                                    controlling
                                                    shareholders
                                                    Portion
Intangible        1,508,756      1,512,724          attributed to       44,666          54,473
assets                                              non-controlling
                                                    interests
                                                                                        
                  11,762,553     8,776,467                              8,022,557       8,869,033
                                                                                        
                                                    Total
Total Assets    17,165,727   14,350,197     Shareholders’     17,165,727    14,350,197
                                                    Equity
                                                                                        


                                          R$ ('000)
FIXED ASSETS
                                              
Balance as of December 31, 2011:              6,172,783
                                              
(+) CAPEX
Campos Basin                                  2,073,746
Santos Basin                                  513,091
Parnaíba Basin                                374,966
Espirito Santo Basin                          47,842
Pará Maranhão Basin                           45,910
Colombian Basins                              0
Corporate                                     130,483
                                              3,186,038
                                              
(+) Borrowing costs                           123,261
                                              
(+) Asset retirement obligation               103,047
                                              
(-) Gross margin EWT                          (79,644)
                                              
(-) Disposals                                 (98)
                                              
(-) Depreciation                              (26,087)
                                              
(-) Write off Dry/Subcommercial wells         (460,235)
                                              
Balance as of September 30, 2012          9,019,065



                                        R$ ('000)
LOANS AND FINANCING
                                              
Balance as of December 31, 2011:              (4,772,414)
                                              
(-) New fundings                              (2,537,689)
(-) Accrued interests                         (403,775)
(-) Currency exchange                         (695,957)
(+) Interest paid                             336,315
(+) Funding costs                             39,032
(-) Amortization of funding costs             (12,284)
                                              
Balance as of September 30, 2012        (8,046,772)


Earnings Results

We ended 3Q12 with net losses YTD of R$887.1 million, largely without an
impact on cash. This net loss is chiefly due to: (a) expenditures with the
exploratory campaign of R$172.6 million; (b) general and administrative
expenses of R$158.6 million; (c) expenses of R$460.2 million relative to dry
wells and sub-commercial areas that represent accounting effects; (d) foreign
exchange variation expenses, chiefly unrealized, of R$366.1 million; (e) net
financial expenses of R$106.9 million; and (f) the cost of oil sold after the
end of the extended well test (EWT) at R$124.6 million. These impacts were
partially offset by: (g) net revenue of R$150.7 million from oil sales after
the conclusion of the EWT; and (h) the positive impact of income tax and
social contribution, the majority of which is deferred, of R$389.1 million.

Exploration Expenses

Exploration expenses increased R$47.4 million year-on-year. This variation was
primarily the result of the intensification of seismic campaigns in the
Parnaíba Basin and Colombia.

General and Administrative Expenses

General and administrative expenses decreased R$21 million year-on-year,
driven by the R$10 million reduction in expenses with profit sharing.

Dry and Sub-commercial Wells

In 3Q12, the Company posted an expense of R$460.2 million with dry wells and
sub-commercial areas. Of this amount, R$213.2 million account for previously
capitalized expenses in the BM-S-29 block, which was returned in August of
2012. The remaining balance refers to dry or sub-commercial wells.

Foreign Exchange Expense

In 3Q12, the Company posted net foreign exchange expenses of R$366.1 million,
compared to a net expense of R$4.2 million in 3Q11, for an increase of R$361.9
million.

This foreign exchange expense is almost entirely non-cash and due to a net
foreign exchange exposure of US$2.1 billion. Despite the loss in U.S. dollars
exceeding income, the Company opted not to contract hedge instruments for this
non-cash exposure as it plans to settle this dollar-denominated liability
through revenue from oil sales to be booked in the same currency, production
of which began on January 31, 2012. Thus, the net foreign exchange exposure
will be protected by a natural hedge to be generated by oil sales.

Financial Result

The R$106.9 million financial expense in 3Q12 is explained by: (a) the
un-capitalized interest on financing of R$302.9 million, partially offset by
(b) gains on financial investments of R$194.7 million; and (c) other net
financial income of R$1.3 million.

Cost of Products Sold

The R$124.6 million cost of goods sold incurred with the oil sales after the
EWT is broken down as: (a) expenses with leasing of R$52.7 million; (b) O&M
services of R$28.1 million; (c) logistics of R$27.8 million; (d) royalties of
R$14.8 million; and (e) others of R$1.2 million.

Net Sales Revenue

The Company’s sales in 3Q12 total R$324.7 (until October total R$493.8
million). Of this total, R$150.7 million earned after the EWT with the sale of
a shipment of 789,800 barrels to Shell booked as net sales revenue. Sales
prior to the conclusion of the EWT of R$174 million for 794,200 barrels were
booked as a reduction in property, plant and equipment.

Balance Sheet

We ended 3Q12 with a solid cash position of R$5.1 billion (equal to US$2.5
billion).

Cash and Cash Equivalents

Cash and cash equivalents totaled R$5.1 billion on September 30, 2012, down
R$308.9 million over the balance on December 31, 2012. This decrease is
chiefly due to: (a) CAPEX of R$3.2 billion, partially offset by (b)
fundraising in 1Q12 of R$2.5 billion; (c) EBITDA from FPSO OSX-1 of R$105.7
million; and (d) restitution of withholding income tax on financial
applications of R$156 million.

Property, Plant and Equipment (CAPEX)

Property, plant and equipment represented by capital expenditures during the
exploration and development phases include expenses related to drilling
campaigns and acquisition of E&P equipment. From December 31, 2011 to
September 30, 2012, this balance increased by R$2.8 billion.

Loans and Financing

The R$3.3 billion increase in the balance of loans and financing between
December 31, 2011 and September 30, 2012 is due to the transactions listed in
the loans and financing table in the appendix.

Conference Call:

Friday, November 9 at 12 P.M. (Brasília Time Zone); 9:00 A.M. (EST)
Telephone (Brazil): +55 11 4688-6341 or +55 11 2104-8901
Telephone Toll-free (US): +1 855 281-6021
Telephone (US): + 1 786 924-6977
Code: OGX
Webcast in Portuguese: www.ccall.com.br/ogx/3t12.htm

Webcast in English:  www.ccall.com.br/ogx/3q12.htm

Audio will be available three hours after the conference call on the IR
website: www.ogx.com.br/ri
The conference call will be conducted in English with simultaneous translation
to Portuguese.

ABOUT OGX

OGX Petróleo e Gás SA is focused on oil and natural gas exploration and
production and is conducting the largest private-sector exploratory campaign
in Brazil. OGX has a diversified, high-potential portfolio, comprised of 28
exploratory blocks in the Campos, Santos, Espírito Santo, Pará-Maranhão and
Parnaíba Basins in Brazil, and 4 exploratory blocks in Colombia, in the Lower
Magdalena Valley and the Cesar-Ranchería basins. The total extension area is
of approximately 5,675 km² in sea and approximately 36,700 km² on land, with
24,500 km² in Brazil and 12,200 km² in Colombia. OGX relies upon an
experienced management team and holds a solid cash position, with
approximately US$2.5 billion in cash (as of September 2012) to fund its E&P
investments and new opportunities. In June of 2008, the company went public
raising R$6.7 billion, which at the time was the largest amount ever raised in
a Brazilian IPO. OGX is a member of the EBX Group, an industrial group founded
and under the leadership of Brazilian entrepreneur Eike F. Batista, who has a
proven track record in developing new ventures in the natural resources and
infrastructure sectors. For more information, please visit: www.ogx.com.br/ri

LEGAL NOTICE

This document contains Company-related statements and information that reflect
the current vision and/or expectations the Company and its management have
regarding its business plan. These include, among others, all forward-looking
statements that involve forecasts and projections, indicate or imply results,
performance or future achievements, and may contain words such as “believe,”
“foresee,” “expect,” “consider,” “is likely to result in” or other words or
expressions of similar meaning. Such statements are subject to a series of
expressive risks, uncertainty and premises. Please be advised that several
important factors can cause the actual results to diverge materially from the
plans, objectives, expectations, estimations, and intentions expressed in this
document. In no event shall the Company 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. The Company 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.

Photos/MultimediaGallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50471992&lang=en

Multimedia
Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50471992&lang=en

Contact:

OGX
Investors:
Roberto Monteiro/Eduardo Lucchesi, +55 21 2555 6237
roberto.monteiro@ogx.com.br
eduardo.lucchesi@ogx.com.br
or
Media:
Daniele Rivera, +55 21 2555 7568
daniele.rivera@ogx.com.br
 
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