OREANDA-NEWS. March 29, 2012. OGX, the Brazilian oil and gas company responsible for the largest private sector exploratory campaign in Brazil, announces the pricing of Senior Unsecured Notes ("Notes") totaling USD  1.063 billion.  The Notes will be due on April 1, 2022 and will accrue interest at rate of 8.375% per annum, payable semi-annually, on April and October.

When added to OGX’s current cash position as of December 31, 2011 and RUSD  600 million financing obtained by OGX Maranhao, the net proceeds from the issuance of the Notes provide a liquidity of approximately USD  4.4 billion, which is sufficient for OGX to support its business plan investments until the Company becomes free cash flow positive.

This funding provides the necessary capital for OGX's investment program, including subsea completion of all producing wells until the end of 2013, incremental exploration capex in the blocks BM-C-37 and BM-C-38, where OGX recently increased its participation and became operator and appraisal of the Santos Basin shallow water pre-salt discovery, while also maintaining a cash position which financially structures the Company for potential new ventures and bidding rounds.