– Eike Batista Grants OGX US$1.0 Billion Put Option –
OGX Petróleo e Gás Participações S.A. (“OGX”) (Bovespa: OGXP3; OTC: OGXPY.PK), Brazil's largest private oil and natural gas exploration company, announced today that given the great number of opportunities in the oil and gas sector, its controlling shareholder, Eike Batista, granted to the Company the right to demand the subscription of new common shares of OGX at a price per share of R$6.30. The amount is limited to the equivalent of US$1.0 billion (“Put” or “Option”).
The Option 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. This option will expire after April 30, 2014.
“This option underpins my confidence in OGX's technical expertise and quality assets, as well as the new opportunities that the oil and gas sector offer to OGX,” commented Eike Batista, controlling shareholder and President of the Board of Directors of 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 29 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 approximately 6,400 km² in sea and approximately 36,700 km² in land, with 24,500 km² in Brazil and 12,200 km² in Colombia. OGX relies on an experienced management team and holds a solid cash position, with approximately US$2.9 billion in cash (as of June, 2012) to fund its E&P investments and new opportunities. In June 2008, the company went public raising R$6.7 billion, the largest amount ever raised in a Brazilian primary IPO at that moment. 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/ir.
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