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OGX Petroleo e Gas Participacoes SA, Company Intelligence Report - Product Image

OGX Petroleo e Gas Participacoes SA, Company Intelligence Report

  • ID: 1568302
  • December 2012
  • 44 Pages
  • GlobalData

OGX Petroleo e Gas Participacoes SA, Company Intelligence Report

Summary

OGX Petroleo e Gas Participacoes SA (OGX) is a Brazilian company, headquartered in Rio de Janeiro and listed on the Saulo Polo stock exchange. The company is one of the five companies that make up the EBX group, which carries out business activities such as energy, mining and logistics in Brazil, Colombia and Chile. This group holds a 61% stake in OGX, which was incorporated in June 2007 and announced its Initial Public Offering (IPO) in June 2008. The company generated total proceeds of $4.1 billion through this offering; this represented the highest IPO proceeds in Brazil until then.

OGX is involved in the Exploration and Production (E&P) activities relating to crude oil and natural gas resources in Brazil and Colombia. Currently, the company’s upstream portfolio includes 33 exploratory blocks, of which 28 blocks are located in Brazil and the remaining five are located in Colombia. The company’s operations in Brazil are spread mainly across four offshore basins such as the Campos, Santos, Esperanto Santo and Pará-Maranhão basins and the onshore Parnaíba basin. READ MORE >

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1.1 List of Tables
1.2 List of Figures
2 OGX Petroleo e Gas Participacoes SA, Company Overview
3 OGX Petroleo e Gas Participacoes SA, Key Highlights
3.1 Unexplored Potential of Brazil to Expand OGX’s Upstream Portfolio
3.2 Efficient Utilization of Secondary Market to Fund Operations and Exploration Program; Accelerating Exploration and Production Activities to Boost Cash Flows
4 OGX Petroleo e Gas Participacoes SA, SWOT Analysis
4.1 Strengths
4.1.1 Aggressive Exploratory Campaign to Result in Substantial Resource Base Discoveries
4.1.2 Strong Cash Position to Fund Exploration Plans
4.2 Weaknesses
4.2.1 Limited Geographical Reach and Heavy Reliance on Assets in Brazil
4.3 Opportunities
4.3.1 Joint Ventures May Accelerate Drilling Activities and Reduce Exploration Risk
4.4 Threats
4.4.1 Concerns over Ability to Monetize Assets May Derail Growth Plans
5 OGX Petroleo e Gas Participacoes SA, Goals and Strategies
5.1 Create Value for Shareholders Through Effective Exploration and Development Activities
6 OGX Petroleo e Gas Participacoes SA, Production Overview
6.1 Production Profile
7 OGX Petroleo e Gas Participacoes SA, Exploration and Development Overview
7.1 Exploration and Development Profile
7.2 Brazil
7.2.1 Campos Basin
7.2.2 Parnaíba Basin
7.2.3 Santos Basin
7.2.4 Espírito Santo Basin
7.2.5 Para Maranhao Basin
7.3 Colombia
7.3.1 Cesar-Ranchería Basin
7.3.2 Lower and Middle Magdalena Valley Basin
8 OGX Petroleo e Gas Participacoes SA, Capital Expenditure
8.1 Costs Incurred
9 OGX Petroleo e Gas Participacoes SA, M&A Activities
10 OGX Petroleo e Gas Participacoes SA, Forecast Production and Financial Statements
10.1 Income Statement (2010–2016)
10.2 Balance Sheet (2010–2016)
10.3 Cash Flow Statement (2010–2016)
10.4 Financial Ratios
11 OGX Petroleo e Gas Participacoes SA, Valuation
12 OGX Petroleo e Gas Participacoes SA, Detailed Operational and Financial Metrics
12.1 OGX Petroleo e Gas Participacoes SA, E&P Costs Trends
12.1.1 Upstream Capital Expenditure, 2007-2011
12.1.2 Exploration and Development Costs, By Country/Region, 2007-2011
12.2 OGX Petroleo e Gas Participacoes SA, Results of Oil & Gas Operations Trend
12.2.1 Oil and Gas Revenue and Expenses, 2007-2011
12.2.2 Oil and Gas Revenue and Expenses, By Country/Region, 2007-2011
13 Appendix
13.1 Abbreviations
13.2 Sources
13.3 Methodology
13.3.1 Coverage
13.3.2 Secondary Research
13.3.3 Primary Research
13.4 Contact Us
13.5 Disclaimer

1.1 List of Tables
Table 1: OGX Petroleo e Gas Participacoes SA, Key Events, 2012
Table 2: OGX Petroleo e Gas Participacoes SA, Exploration Blocks in the Campos Basin, 2011
Table 3: OGX Petroleo e Gas Participacoes SA, Exploration Blocks in Parnaiba Basin, 2012
Table 4: OGX Petroleo e Gas Participacoes SA, Exploration Blocks in Santos Basin, 2012
Table 5: OGX Petroleo e Gas Participacoes SA, Exploration Blocks in Espirito Santo Basin, 2012
Table 6: OGX Petroleo e Gas Participacoes SA, Exploration Blocks in Para Maranhao Basin, 2012
Table 7: OGX Petroleo e Gas Participacoes SA, Exploration Blocks in Colombia, 2012
Table 8: OGX Petroleo e Gas Participacoes SA, Major Discoveries, 2009–2012
Table 9: OGX Petroleo e Gas Participacoes SA, Recent Transactions as a Buyer, 2009–2012
Table 10: OGX Petroleo e Gas Participacoes SA, Recent Transactions as a Seller, 2010
Table 11: OGX Petroleo e Gas Participacoes SA, Estimated Production, 2012–2016
Table 12: OGX Petroleo e Gas Participacoes SA, Income Statement, $m, 2010–2016
Table 13: OGX Petroleo e Gas Participacoes SA, Balance Sheet, $m, 2010–2016
Table 14: OGX Petroleo e Gas Participacoes SA, Cash Flow Statement, $m, 2010–2016
Table 15: OGX Petroleo e Gas Participacoes SA, Profitability Ratios, 2010–2016
Table 16: OGX Petroleo e Gas Participacoes SA, Other Financial Ratios, 2010–2016
Table 17: OGX Petroleo e Gas Participacoes SA, Free Cash Flow Calculation, $m, 2012
Table 18: OGX Petroleo e Gas Participacoes SA, DCF Calculation, 2012
Table 19: OGX Petroleo e Gas Participacoes SA, Upstream Capital Expenditure, $m, 2007-2011
Table 20: OGX Petroleo e Gas Participacoes SA, Exploration and Development Costs, By Country/Region, $m, 2007-2011
Table 21: OGX Petroleo e Gas Participacoes SA, Revenue and Expenses, $m, 2007-2011
Table 22: OGX Petroleo e Gas Participacoes SA, Revenue and Expenses, By Country/Region, $m, 2007-2011

1.2 List of Figures
Figure 1: OGX Petroleo e Gas Participacoes SA, Operational Map, 2012
Figure 2: OGX Petroleo e Gas Participacoes SA, Financial and Operational Overview, 2007–2011
Figure 3: OGX Petroleo e Gas Participacoes SA, Share Price Performance, September 2011–August 2012
Figure 4: Leading Five Countries by Number of Oil and Gas Discoveries, 2008–2012-
Figure 5 : Brazil, Total Proved Reserves (billion boe) and Share of Oil in Total Reserves (%), 2007–2011
Figure 6 : OGX Petroleo e Gas Participacoes SA, Production Forecast, 2012–2016
Figure 7: OGX Petroleo e Gas Participacoes SA, Cash and Cash Equivalents ($m), 2007–2011
Figure 8: OGX Petroleo e Gas Participacoes SA, Production Forecast, 2012–2016
Figure 9: OGX Petroleo e Gas Participacoes SA, Asset Portfolio, Brazil, 2012
Figure 10: OGX Petroleo e Gas Participacoes SA, Exploration Targets, Campos Basin Overview, 2012
Figure 11: OGX Petroleo e Gas Participacoes SA, Parnaiba Basin Overview, 2012
Figure 12: OGX Petroleo e Gas Participacoes SA, Operational Map, Santos Basin, 2012
Figure 13: OGX Petroleo e Gas Participacoes SA, Operational Map, Espirito Santo Basin, 2012
Figure 14: OGX Petroleo e Gas Participacoes SA, Operational Map, Para Maranhao Basin, 2012
Figure 15: OGX Petroleo e Gas Participacoes SA, Operational Map, Colombia, 2012
Figure 16: OGX Petroleo e Gas Participacoes SA, Capital Expenditure ($m), 2007–2011
Figure 17: OGX Petroleo e Gas Participacoes SA, Exploration Costs ($m), 2007–2011
Figure 18: OGX Petroleo e Gas Participacoes SA, Exploration Costs, By Country/Region, $m, 2007-2011
Figure 19: OGX Petroleo e Gas Participacoes SA, Exploration Expenses, By Country/Region, $m, 2007-2011

Efficient Utilization of Secondary Market to Fund Operations and Exploration Program; Accelerating Exploration and Production Activities to Boost Cash Flows

OGX was incorporated in July 2007 and has raised funds of $9.1 billion since its incorporation. The company approached several secondary market sources, such as private placement, IPO and bond issuance in order to meet capital requirements for its initial operations. These proceeds were mainly utilized towards the acquisition of concession rights and support for the company’s exploration activities through seismic data acquisition and interpretation, procurement of required equipment and the drilling of several wildcat/exploration wells. The company has been reasonably efficient in the execution of its exploration activities, and reported an overall success rate of around 84.7% for its recent drilling activities during 2009–Q3 2012. OGX reported around 30 offshore discoveries in the Campos and Santos basins and four onshore discoveries in the Parnaiba basin until Q3 2012. One of the company’s discoveries in the Campos basin has reached the production stage, while other discoveries are in the initial appraisal and development stages. OGX has begun to generate cash flows over a short period of time, which shows the effectiveness of its business strategy.

Currently, OGX’s operations are concentrated in the Campos basin, where the company holds interest in seven offshore exploration blocks. These blocks are located at a shallow depth of around 120 meters. The company drilled 68 wells in this basin between Q3 2009 and Q3 2012, and recorded a success rate of around 90%. It has discovered around 4.1 million barrels (MMbbl) of resources in the basin so far. Moreover, OGX has already declared 395 MMbbl of resources in the basin as commercial. These resources are located in the Tubarão Azul field (Wiamea discovery: 110 MMbbl) and Tubarão Martelo field (Wiakiki discovery: 285 MMbbl). The Wiamea discovery commenced production in January, 2012 from its first production well OGX-26HP. OGX installed an additional well in May 2012, OGX-68HP, to support production. Despite this addition, production levels from these wells have been below the company’s earlier expectations. In Q1 2012, the company reported that it expected production/well of around 40–50 thousand barrels per day (Mbbl/d). However, in Q3 2012, OGX reported an average defined production level of five Mbbl/d per well, excluding production optimization procedures. The company sought approval for the drilling of its first injection well in the Wiamea discovery in Q3 2012. This injection well is expected to support the optimization of production from this discovery. The authors expects the company’s production optimization activities to increase production from the Campos basin. However, OGX’s success in optimizing production from these wells will be a key factor in determining the company’s capability to monetize its assets.

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