RIO DE JANEIRO, BRAZIL--(Marketwire - November 17, 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 Upper 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. holds the remaining 30%.
After drilling the first 10 meters in the Upper Devonian section with significant gas shows at a depth of 1,520 meters, OGX Maranhão conducted a drillstem test. The well was opened to a flow which reached a wellhead pressure of 1,950 psi with flames that were approximately 20 meters in length. At the conclusion of the test, the drilling of well OGX-22, Fazenda São José prospect, will continue to a total depth of 3,200 meters, pursuing new exploratory objectives.
"The drilling of this second successful well, performed at a new wildcat and independent structure, located 12.5km away from 1-OGX-16-MA (California), confirmed the presence of a petrolific province in the region and highlighted the potential of our blocks", commented Mr. Paulo Mendonça, General Executive Officer of OGX.
The OGX-22 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.
"This new finding reinforces our belief in the strategic importance of the Parnaíba Thermal Generation Complex, the development of which should be a landmark in the expansion of gas-based energy generation in Brazil as well as a main driver for MPX's future growth," commented Mr. Eduardo Karrer, CEO of MPX.
The MPX Parnaiba power generation complex, a partnership between MPX (70%) and PETRA Energia S.A. (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 in the blocks and has already been granted the Preliminary License.
Rio de Janeiro, November 17, 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.
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