OGX: 2011 RESULTS

March 2012 |

This presentation uses the terms “prospective resources” and “contingent resources” to describe those quantities of petroleum that are potentially recoverable from accumulations yet to be discovered. Because of the uncertainty to commerciality and lack of sufficient exploration drilling, prospective resources cannot be classified as reserves. Investors are advised that the U.S. Securities and Exchange Commission (SEC) and other international securities regulators do not recognize prospective and contingent resources. Prospective resources have a great amount of uncertainty as to their existence. There is no certainty that any portion of the prospective resources will be discovered and, if discovered, whether they could be developed economically. Therefore, investors are cautioned not to assume that all or any part of OGX’s prospective resources exist, or that they can be developed economically. Accordingly, information concerning prospective and contingent resources contained in this presentation are not comparable to information permitted to be made public by U.S. or other international companies subject to SEC reporting and disclosure requirements, especially Industry Guide 2 under the Securities Act.

Certain of the information and conclusions set forth herein are based on projections. These projections were prepared for the limited purpose of analyzing the potential risks and benefits of an investment in the securities by illustrating under certain limited assumptions. In addition, because of the subjective judgments and inherent uncertainties of projections and because the projections are based on a number of assumptions, which are subject to significant uncertainties and contingencies that are beyond the control of OGX, there can be no assurance that the projections or conclusions derived there from will be realized. Under no circumstances should the projections set forth herein be regarded as a representation, warranty or prediction that OGX will achieve or is likely to achieve any particular future result. There can be no assurance that OGX’s future results or projections will not vary significantly from those set forth herein. Accordingly, investors may lose all of their investment to the extent the projections or conclusions included herein are not ultimately realized.

This presentation also contains forward-looking statements, which may be identified by such words as "may", "plans", "expects", "believes" and similar expressions, or by their context. These statements are made on the basis of current knowledge and, by their nature, involve numerous assumptions and uncertainties.

Various factors could cause OGX's actual future results, performance or events to differ materially from those described in this presentation. In no event shall the Company or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business carried out based on the information and statements that appear in this presentation, or for indirect damage, lost profit or related issues. The Company does not intend to provide to potential shareholders with a revision of the statements or an analysis of the differences between the statements and the actual results. You are urged to carefully review OGX's offering circular, including the risk factors included therein. This presentation does not purport to be all-inclusive or to contain all the information that a prospective investor may desire in evaluating OGX. Each investor must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision.

DISCLAIMER

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First oil on January 31, 2012

Efficient execution: from discovery to production in record timing (2 years)

High operational efficiency with very good well performance

All environmental licenses obtained for Waimea OSX-1 project development

Sale of first oil to Shell priced at a discount of US$ 5.5 to Brent

Offload expected for end of March, 2012

Drilling of 47 wells in 2011 – 13 wildcat, 26 appraisal and 8 production wells

Acquisition of 20% of blocks BM-C-37 and BM-C-38 from Maersk, with OGX becoming the operator

Excellent drill-stem test results in Santos Basin

Pre-salt discovery confirming microbiolite reservoir in shallow waters of the Santos Basin

Declaration of commerciality and initial development of 2 fields in the Parnaíba Basin

Spudding of the first two wells in the Espírito Santo Basin

Successful US$ 2.6bn bond offering in May 2011

Raising of R$ 600 million to finance the development of the Gavião Real and Gavião Azul fields

2011 HIGHLIGHTS AND SUBSEQUENT EVENTS

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FINANCIAL RESULTS HIGHLIGHTS

Net Financial Results:

Impact of interest income, net losses on hedging of future commitments in foreign currency, offset by positive impact of marking-to-market the fair value of financial instruments, interest expenses and exchange rate variations

Exploration Expenses:

Primarily related to the exploration campaign in the Campos, Santos, Parnaíba and Espírito Santo basins. Write-off of 4 non commercial wells (1 in Campos and 3 in Parnaíba) and of expenses incurred on the Pará-Maranhão exploratory campaign

General and Administrative Expenses:

Decrease in expenses related to the stock options plan partially offset by the YOY increase in the number of employees

Intangibles:

Impacted by the intensification of our drilling campaign mainly in Campos, Santos and Parnaíba basins, going from 26 wells drilled in 2010 to 47 in 2011

2011 FINANCIAL RESULTS

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Financial Statements - Main Items

R$ ('000) 2011 2010 Δ

Net Financial Result 6,120 258,506 (252,386)

Financial Income 2,531,222 694,411 1,836,811

Financial Expenses (2,525,102) (435,905) (2,089,197)

Exploration Expenses (425,830) (97,841) (327,989)

G&A Expenses (308,164) (319,072) 10,908

Taxes 217,989 22,882 195,107

Net Result for the period (509,885) (135,525) (374,360)

Interest of non controlling shareholders (27,720) (12,048) (15,672)

Attributed to controlling shareholders' interest (482,165) (123,477) (358,688)

Balance Sheet

R$ ('000) 12/ 31/ 2011 12/ 31/ 2010 Δ

Cash and cash equivalents* 5,458,780 4,788,166 670,614

Intangible + PP&E 7,685,507 4,617,042 3,068,465Financial Debt 4,772,414 - 4,772,414* cash and cash equivalent + marketable securities

STRONG CASH POSITION

Solid cash position of R$ 5.5 billion, or US$ 2.9 billion, to support exploration commitments, development and initial production:

~58% of total cash protected against FX variations

US$ 1.6 billion invested in offshore deposits

US$ 54.6 million hedged through NDF (non deliverable forward) contracts

R$ 600 million bridge loan raised in January 2012 to fund Parnaíba development

Cash allocation in R$: Average cumulative gross return equivalent to 103.5% of the Interbank Deposit Rate (CDI), or 12% p.a.

Cash Allocation in US$: Average cumulative gross return equivalent to 2.3% p.a.

Cash position in fixed income instruments allocated to Brazil’s most solid financial institutions

R$ billion US$ billion

Cash Position Evolution Cash Allocation

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Bradesco30%

Itau Unibanco34%

BTG Pactual7%

Santander8%

Votorantim8%

CS4%

Others9%

EXPLORATORY CAMPAIGN

CAMPOS BASIN

16 wells drilled

No horizontal well drilled

59 wells drilled in total, since inception

More than 90% success rate

6 producer horizontal wells drilled

Several drill-stem tests performed

2010 2011/2012

Exploratory Campaign Evolution

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CAMPOS BASIN

2011 - Drilling Area 1C¹

OGX-50D/OGX-55HP Waimea 1C – Albian 52m

OGX-53D/OGX-60HP Waimea 1C – Albian 71m

OGX-65D/OGX-68HP Waimea 1C – Albian 97m

2011 - Drilling Area 2C¹

OGX-40D Pipeline 2C – Albian 107m

OGX-41D/OGX-44HP Waikiki 2C – Albian 92m

2011 - Drilling Area 3C¹

OGX-35D Waikiki 3C – Albian 80m

OGX-36D/OGX-39HP Pipeline 3C – Albian 60m

OGX-42D Pipeline 3C – Albian 82m

OGX-48 Pipeline 3C – Albian 12m

OGX-56D Fuji 3C – Albian 60m

OGX-61 Illimani 3C - Albian 9m

OGX-62 Ingá 3C – Santonian 26m Albian 20m

OGX-64DP Ingá 3C – Santonian 23m

OGX-67 Ingá 3C -

OGX-69 Fuji 3C - Albian 38m

OGX-70 Pipeline 3C -

2011 - Drilling Area Delineation

OGX-43D Illimani Delineation– Albian 50m

OGX-45D Waikiki Delineation – Maastric. 5m

OGX-54 Fuji Delineation– Albian 24m

Note:¹Drilling area as per D&M’s Dec/10 reports and net pay indicated in meters*Prospects not contemplated in D&M’s Dec/10 report

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2012 - Drilling Area ¹

OGX-71 Ingá 3C -

OGX-72 Pipeline 3C – Albian 129m

OGX-76 Peró 2C – In progress

2012 - Drilling New Areas*

OGX-73 Osorno Albian 37m

OGX-75 Tambora In progress

Highlights

Blocks that OGX acquired 20% from Maersk (OGX now owns 70%)

Intensified Appraisal And New Prospective Discoveries

Successful appraisal campaign with 32 wells drilled and a 91% hit ratio since the beginning of exploratory campaign

Important new discoveries in 2011 - YTD Illimani Osorno Carambola B Chimborazo Tambora

New D&M certification for Waikiki accumulation

2C = 212 Mboe

3C = 302 Mboe

Waimea and Waikiki declaration of

commerciality underway

Acquisition of 20% of blocks BM-C-37 and BM-C-38 from Maersk, with OGX becoming operator

SANTOS BASIN

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Main Achievements

Next Steps

Exploration Campaign

Successful drilling of 11 wells

More than 70% success rate

DST performed in Maceió (OGX-47) and Natal (OGX-

11)

Accumulations with 20-25% of condensate (47-

50° API) and excellent flow rates

Significant discovery in Fortaleza (OGX-63) in Albian

and Aptian (pre-salt) reservoirs

Conclude drilling of pre-salt discovery with Ocean

Star rig

Logging and testing results by mid-2012

Appraisal campaign in Maceió and Natal

accumulations

New drill-stem tests

Adding Further Value to the Basin

SANTOS BASIN

Good porosity

Dolomitized layers with open fractures

MDT Dual-Packer Test collected 47º API

hydrocarbons

Pore

Dolomitized microbial

Connected vugular porosity

Light oil/condensate shows

Oil

Highlights Albian Gas Interval

Aptian Interval

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Pre-Salt Discovery in Shallow Waters

Albian reservoir

Approximately 1,000 meters of column and 110 meters of net pay

Good permoporosity and fractures

Shallow waters Pre-salt (Aptian reservoir)

Drilled up to 6,135 meters and thus far identified column of 150 meters

1st microbiolite Pre-salt discovery in shallow waters in Brazil

Same reservoir rock in pre-salt as only seen so far in deep and ultra-deep waters in the Santos and Campos Basins

Strong kick in the last drilled layer of the reservoir with shows of hydrocarbons

PARNAÍBA BASIN

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Highlights

Appraisal wellsWildcat wells

Gavião Real

Gavião Azul

new seismic acquisition

Bom Jesus

Fazenda

Torrão

Fazenda Axixá

¹

Exploration Campaign

7 wells drilled with gas finds and 3 dry wells

70% success rate

2 accumulations declared commercial and 2

others discovered

6 wildcat wells to be drilled in 2012

3 seismic crews working on the region (more

than 1,000 people mobilized)

3rd drilling rig contracted and being mobilized

Note:¹ Drilling in progress

EXPLORATORY CAMPAIGN

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PARÁ-MARANHÃO BASIN ESPÍRITO SANTO BASIN COLOMBIA

Waiting for IBAMA environmental license

OGX obtained an additional exploratory period of 496 days, counting from IBAMA license granting

1st well expected to be drilled in 2012

2 dry wells drilled in commitment blocks (PERN-1 and PERN-2)

More wells to be drilled until 2013 in the southern blocks

Acquiring seismic for the Lower Magdalena Valley block

Negotiations with local communities for environmental licenses

1st well planned to be drilled in Cesar-Ranchería in 2H12

OGX to participate in new ANH round in 2H12

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Other Basins in the Portfolio

PRODUCTION

CAMPOS BASIN

Dec 23,

2011Concluded the connection of the flexible lines to the detachable turret

Sep 16,

2011Granting of the preliminary and installation license by IBAMA

Sep 17,

2011Beginning of the subsea installation (piles, moorings and MWA)

Dec 19,

2011Flexible lines launched and connected to the wet christmas tree

Dec 25,

2011Sail away of the FPSO OSX-1 from the port of Rio de Janeiro

Jan 31,

2012FPSO OSX-1 begins production

Jan 12,

2012Connection of the FPSO OSX-1 to the turret

Dec 18,

2009Discovery of Waimea OGX-3

Oct 4,

2011Arrival of the FPSO OSX-1 in Rio de Janeiro

1st Oil

Record Time from Discovery to 1st Oil

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Highlights and Ongoing Production Performance

CAMPOS BASIN

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FPSO OSX-1 Operational Efficiency

Average Efficiency

Feb: 95%

Mar: 99%

Electrical submersible pump working path

to highest operational performance

standards

Processing plant and FPSO OSX-1 operating

with ~95% operational efficiency, an

outstanding achievement for the first

month

Tested production levels between 10 and

18 kbpd since production began

Average flow rate of 11.1 kbpd in Feb 2012

Flow rate estimated to stabilize at between

10 and 13 kbpd for the coming few months

(before the water injection)

1st Month of Production

0%

20%

40%

60%

80%

100%

1-Feb 6-Feb 11-Feb 16-Feb 21-Feb 26-Feb 2-Mar 7-Mar 12-Mar 17-Mar

CAMPOS BASIN

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Production Concept

BuoyOSX-1Risers and Umbilicals

Flexible lines

Wet christmas tree 1OGX-26HP

Moorings and Piles

Wet christmas tree 2

Wet christmas tree 3

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Illustrative frame

Highlights and Future Development

Oil quality of 20° API

Water depth of 140 meters

Environmental license already obtained for all OSX-1 producing

system

Production in the Waimea Accumulation

OGX-26HP in production since Jan 2012

2 additional horizontal wells drilled, to be

connected to FPSO OSX-1 in mid-2012

2nd well to be connected – OGX-68HP

3rd well to be connected – OGX-60HP

Engineering the connection of a 4th producer

well

Expected production ramp-up to 40-50 kbpd

level by end of 2012

CAMPOS BASIN

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OSX-2 (SBM – Keppel shipyard, Singapore)

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Highlights

Future Development of the Basin

OSX-3 (Modec – Jurong shipyard, Singapore)

OSX-2 and OSX-3 construction on schedule

and financing in place

30% of projects concluded, on

average, in Singapore by SBM and

Modec, respectively

Expected delivery dates confirmed for

2H13

Four sub-sea wells to be connected to

each of the FPSOs (OSX-2 and OSX-3)

WHPs to arrive by 1H14 and be connected

to both FPSOs

PARNAÍBA BASIN

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Execution Highlights Thermal Power Plant

E&P

GE TURBINES CONTRACTED BY MPX

CONTRACTED RIG AND DRILL-STEM TEST PERFORMED

Environmental permits already granted (LP+LI)

5 producing wells already drilled and 1 well in progress

Drilled and tested the first production well GVR-1

Production potential of 5.0 M m³/day (AOF)

EPC contracted for the construction of the gas processing facility

Awarded to Valerus-Geogas

Beginning of the civil works on the site in Feb 2012

Clearing the rights-of-way for the pipeline

Gas treatment facility construction

Project Development

PARNAÍBA BASIN

2020

Production Development Timeline

Well Drilling

System pre-assembly Site activities

Project Concept Basic ProjectEIA

(Environmental Impact Study)

Public Hearings Preliminary

license

MAR 2011 AUG 2011 SEP 2011 NOV 2011 DEC 2011

Installation

license

JAN 2012 2H2012

LO

JUL 2012

1st GAS

Rapid execution of the Parnaíba project since conceptual fase

Commissioning of the Gas Treatment Unit and turbines during 2H12

1st gas produced in 2H12 and commercialization by beginning of 2013

PARNAÍBA BASIN

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Manifolds and PumpsSpools and headers skidsProject Development

PARNAÍBA BASIN

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Works on the Rights-of-Way Gas Treatment Unit - GTU

Project Development (Cont’d)

Continue exploration and appraisal campaigns in the Campos, Santos, Parnaíba and Espírito Santo Basins

Declaration of commerciality of Waimea and submit Development Plan to the ANP

Connection of the two additional production horizontal wells in Waimea by mid-2012 and possibly a 4 th producer

Drilling of approximately 6 exploration wells in blocks BM-C-37 and BM-C-38, where OGX recently became operator

Drill-stem test results in the Santos Basin (pre-salt results by mid-2012)

Continue with the drilling of development wells in the Parnaíba Basin

Beginning of drilling in the Cesar-Ranchería Basin in Colombia

Potential new ANP bidding round in Brazil

Participation in next ANH bidding round in Colombia

UPCOMING EVENTS

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