OGX Surges in Sao Paulo After Finding Hydrocarbons in Brazil Santos Basin

OGX Petroleo (OGXP3) & Gas Participacoes SA, the oil company controlled by Brazilian billionaire Eike Batista, said it found hydrocarbons in two separate sections of a well it is drilling in shallow waters offshore Brazil.

OGX found hydrocarbons in the albian and aptian sections of the 1-OGX-63-SPS well, also known as Fortaleza, in the BM-S-57 block, the company said in a regulatory filing today. OGX said it found a reservoir about 110 meters (361 feet) thick in the aptian section.

The Fortaleza well contains the thickest reservoir the Rio de Janeiro-based company has found to date in the Santos Basin, according to data on OGX’s website. OGX operates five exploration licenses in Santos Basin, where the company has 1.8 billion barrels of potential oil and natural-gas resources. OGX has primarily discovered natural gas and condensates in the area since it started drilling in 2010.

OGX rose 3.1 percent, or 44 centavos, to 14.60 reais in Sao Paulo at 11:45 a.m., more than the 0.5 percent rise in Brazil’s benchmark Bovespa stock index.

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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