RIO DE JANEIRO, BRAZIL--(Marketwire - November 24, 2010) - MPX Energia S.A. ("MPX") (BOVESPA: MPXE3) (GDR I: MPXEY), a diversified utility company with a large portfolio of thermal energy projects, announced today that through its subsidiary OGX Maranhão, it has identified the presence of gas in the Lower Devonian section of well 1-OGX-22-MA, in block PN-T-68, in the onshore basin of Parnaiba. OGX Maranhão, a joint venture between MPX (33.3%) and OGX Petróleo e Gás Participações S.A. (66.6%), is the operator and holds a 70% stake in this block, while Petra Energia S.A. ("Petra") holds the remaining 30%.
Following the discovery made in the Upper Devonian section of the Poti Formation, announced on November 17, 2010, the drilling of the well OGX-22 continued and a new accumulation of gas in the Lower Devonian section of the Cabeças Formation was identified. An intermediate logging was performed, enabling the determination of the net pay of both formations, approximately 49 meters and 47 meters, respectively, which further supported the perspective of the region's enourmous potential.
In addition, MPX also reported today additional data obtained from the drillstem test performed in the Upper Devoninan section, announced on November 17, 2010, which indicates that the well has an exceptional production potential, of up to 3.4 million cubic meters per day in absolute open flow (AOF)(1). This result individually indicates a power generation potential of up to 500 MW in open cycle or 800 MW in combined cycle. The well OGX-22 is only the second of a total of 15 wells foreseen in the drilling campaign until 2012.
The drilling of the well OGX-22, a prospect also known as Fazenda São José, is expected to continue to an estimated total depth of 3,200 meters, targeting new exploratory objectives. The well, located in the PN-T-68 block, is situated approximately 260 kilometers from São Luis, the capital of the state of Maranhão. The rig QG-1 initiated drilling activities there on October 23, 2010.
The MPX Parnaiba power generation complex, a partnership between MPX (70%) and Petra (30%), consists of gas-fired plants that are expected to provide up to 1,863 MW of power. The complex will be fueled by the gas produced by OGX Maranhão and Petra in the Parnaíba basin and has already been granted the Preliminary License.
Rio de Janeiro, November 24, 2010.
Eduardo Karrer
CEO and IR Officer
ABOUT MPX
MPX Energia S.A., an EBX Group company, is a Brazilian diversified utility company with a large portfolio of thermal energy projects that position it to be a leading private-sector power generator. The Company has a portfolio of 4 contracted and 7 greenfield projects in Brazil and Chile of 10 GW of power generation, and also owns high-potential coal and natural gas assets in Colombia and Brazil giving it the flexibility to supply its own plants or sell natural resources in the international market.
(1) The maximum flow rate a well could theoretically deliver with zero pressure at the middle of the perforations.
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