OGX Leads Bovespa on Parnaiba Gas Find: Rio Mover

OGX Petroleo e Gas Participacoes SA, the oil explorer that has lost 85 percent in the past year, led gainers after reporting additional natural gas discoveries in northeastern Brazil.

OGX, controlled by billionaire Eike Batista, rose 4.6 percent to 2.74 reais at 1:21 p.m. in Sao Paulo after earlier rising to as much as 2.78 reais, the highest intraday since March 11. Brazil’s benchmark stock index was down 0.4 percent.

The company based in Rio de Janeiro found additional signs of gas in the PN-T-49 block in the Parnaiba Basin, the National Petroleum Agency reported on its website today. OGX, which began producing gas at the Gaviao Real field in Parnaiba in January, increased output to the equivalent of 5,500 barrels a day in February, the company said on its website.

OGX is down 37 percent for the year after output declined at its three oil wells in the Campos Basin off the coast of Rio de Janeiro, where most of the company’s deposits are located. The wells produced 3,800 barrels a day on average in February, compared with original estimates of as much as 20,000 barrels a day.

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: James Attwood at jattwood3@bloomberg.net

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