OGX's output limited to Gaviao Real natural gas field in August


OGX's output limited to Gaviao Real natural gas field in August


RIO DE JANEIRO -- OGX Petroleo e Gas Participacoes said late production in August was limited to a single natural gas field because the Tubarao Azul oil field remains shuttered for repairs.

OGX produced 13,300 boepd in August, the company said. All of OGX's output came from the inland Gaviao Real natural gas field, which produced an average of 4.5 MMcm of gas per day. OGX's Tubarao Azul oil field is expected to restart production by the end of September, when repairs on a submersible pump are expected to be complete.

Eike Batista is working frantically to save an industrial empire that is headlined by OGX, the entrepreneur's flagship oil company taken public in 2008. But disappointing production results at Tubarao Azul created a crisis of confidence that has spilled across the interlinked group of companies with interests in oil, natural gas, mining, ports and shipbuilding.

Earlier Mr. Batista said he would contest a decision made by OGX's board to exercise a $1 billion put option the company holds with him.

OGX issued a call for Mr. Batista to immediately invest $100 million in the company, with the remaining $900 million of the put to be exercised as the cash is needed.

The decision to fight the put caused credit ratings agency Fitch Ratings to once again downgrade its rating of the company to single C from triple C, citing the possibility of an "imminent default."

Dow Jones Newswires

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