plano ogx-disclosure
DESCRIPTION
TRANSCRIPT
SP - 10208555v1
28 de outubro de 2013 Introdução No que tange às negociações referentes à reestruturação de seu endividamento, OGX Petróleo e Gás Participações S.A. (em conjunto com suas subsidiárias e afiliadas, a “Companhia”) tem fornecido, desde 18 de setembro de 2013, determinadas informações não públicas referentes à Companhia (as “Informações Divulgadas”) a certos potenciais investidores e aos membros de um comitê ad hoc (o “Grupo Ad Hoc”) composto por titulares e gestores de investimento de titulares (em conjunto, os “Titulares”) de 8,500% senior notes com vencimento em 2018 e de 8,375% senior notes com vencimento em 2022 (os “Títulos”) emitidos pela Companhia. O Grupo Ad Hoc declarou que os Titulares detêm a maioria dos Títulos. Mediante assinatura de acordo de confidencialidade junto aos Titulares, celebrado em 18 de setembro de 2013, e acordos de confidencialidade individuais (em conjunto com o Acordo de Confidencialidade, os “Acordos de Confidencialidade”) celebrados junto a outros certos potenciais investidores, a Companhia concordou em divulgar publicamente as Informações Divulgadas após o término do prazo previsto nos Acordos de Confidencialidade. A informação aqui divulgada está sendo fornecida a fim de cumprir com a obrigação da Companhia nos termos dos Acordos de Confidencialidade. A Companhia continua avaliando alternativas para a reestruturação de seu endividamento. Informação Importante As Informações Divulgadas não deverão ser consideradas como uma indicação de que a Companhia ou qualquer outra pessoa tenha considerado, ou considere, essa informação como uma previsão real de resultados futuros, e não constitui uma admissão ou declaração por qualquer pessoa de que tal informação é relevante ou que as expectativas, entendimentos, opiniões e premissas que a permeiam permanecem os mesmos desde a data de divulgação e as informações contidas neste material podem ter sido superadas por eventos subsequentes desde a data ali indicada. Os leitores são alertados a não confiarem nestes materiais e devem observar às informações atualmente públicas da Companhia. Projeções/ Informações Futuras Projeções estão incluídas no material anexo. Tais projeções não foram examinadas por auditores. As projeções e outros materiais aqui previstos contêm certas indicações que são “indicações futuras”. Tais indicações estão sujeitas a premissas, riscos e incertezas, muitos dos quais estão
SP - 10208555v1
e estarão além do controle da Companhia, incluindo a continuidade de disponibilidade de capacidade de contratação de empréstimos suficientes ou outros financiamentos para custear o pagamento futuro de dívidas, regulamentações governamentais existentes e futuras e atos de órgãos governamentais, desastres naturais e condições climáticas adversas e outras condições competitivas e de mercado. Estas indicações refletem a data ali mencionada e não representam garantia de desempenho futuro. Resultados e desenvolvimentos reais podem diferir materialmente das expectativas expressas ou implícitas nas indicações futuras, e a Companhia não se compromete a atualizar quaisquer indicações divulgadas. As projeções, embora apresentadas com dados numéricos específicos, estão necessariamente baseadas em várias estimativas e premissas que, apesar de serem consideradas razoáveis pela Companhia, podem não ser verificadas e estão fundamentalmente sujeitas a significantes incertezas e contingências negociais, econômicas, competitivas, da indústria, regulatórias, de mercado e financeiras, muitas das quais estão e estarão além do controle da Companhia. A Companhia alerta que nenhuma declaração pode ser ou é prestada em relação à precisão das informações financeiras históricas ou das projeções ou da capacidade da Companhia em atingir os resultados projetados. Algumas premissas podem se mostrar imprecisas. Adicionalmente, os eventos e circunstâncias cuja ocorrência seja subsequente à data na qual as projeções tenham sido preparadas podem ser diferentes daqueles assumidos ou, alternativamente, podem não ter sido antecipados, e, portanto, a ocorrência destes eventos poderá afetar os resultados financeiros de maneira significativamente adversa ou benéfica. Informações Contábeis (Non-GAP) As informações financeiras refletidas nas Informações Divulgadas não pretendem representar a condição financeira da Companhia de acordo com os princípios contábeis geralmente aceitos nos Estados Unidos da América ou em qualquer outro país. Os auditores independentes da Companhia não auditaram nem revisaram as Informações Divulgadas (exceto à medida que determinadas informações financeiras históricas podem ter sido em parte derivadas das demonstrações financeiras anuais históricas da Companhia). Obrigações de Financiamento A Companhia está vinculada a vários contratos e outros interesses aos quais ela está obrigada a cumprir, alguns dos quais incluem obrigações de financiamento. Caso a Companhia não seja capaz de financiar tais obrigações, seus interesses em certos contratos-chave e acordos de associações podem ficar comprometidos. A Companhia reserva todos os seus direitos em
SP - 10208555v1
relação a qualquer argumento legal ou de outra natureza que possa ser oponível com vistas à preservação de seus interesses. Propostas de Acordo As Informações Divulgadas incluem uma série de propostas de acordo realizadas. Tais propostas de acordo não devem ser consideradas de maneira alguma. As discussões de acordo entre a Companhia e os Titulares encerraram-se sem que se tenha chegado a um consenso e as propostas da Companhia foram retiradas. Apresentação de Informações Técnicas As Informações Divulgadas incluem slides fornecidos pelo Scotiabank com informações sobre Tubarão Martelo (TBMT), Tubarão Azul (TBAZ), BS-4, Parnaíba (Maranhã) e Exploration. Tais slides foram produzidos a partir de informações fornecidas pela Companhia. Scotiabank é um dos assessores dos Titulares.
K&E 28311485.3
October 28, 2013
Introduction
In connection with negotiations relating to the restructuring of its outstanding indebtedness, OGX Petróleo e Gás Participações S.A. (together with its subsidiaries and affiliates, the “Company”) has, since September 18, 2013, provided certain prospective investors and the members of an ad hoc committee (the “Ad Hoc Group”) of certain holders and investment managers for holders (collectively, the “Holders”) of the 8.500% senior notes due 2018 and the 8.375% senior notes due 2022 (the “Notes”) issued by the Company with certain non-public information relating to the Company (the “Disclosed Information”). The Ad Hoc Group has represented that the Holders hold a majority of the Notes. Pursuant to a confidentiality agreement with the Holders dated as of September 18, 2013, and separate confidentiality agreements (collectively with the Confidentiality Agreement, the “Confidentiality Agreements”) executed with certain other prospective investors, the Company agreed to publicly disclose the Disclosed Information after the expiration of a period set forth in the Confidentiality Agreements. The information disclosed herein is being furnished to comply with the Company’s obligations under the Confidentiality Agreements.
The Company is continuing to evaluate options for restructuring its outstanding indebtedness.
Important Note
The Disclosed Information should not be regarded as an indication that the Company or any other person considered, or now considers, this information to be predictive of actual future results, and does not constitute an admission or representation by any person that such information is material, or that the expectations, beliefs, opinions and assumptions that underlie these materials remain the same as of the date of this disclosure and the information or as of the date indicated contained in these materials may have been superseded by subsequent developments. Readers are cautioned not to place undue reliance on these materials and are referred to the Company’s current public disclosure.
Projections/ Forward Looking Information
Projections are included in the material set forth herein. Such projections have not been examined by auditors.
The projections and other material set forth herein contain certain statements that are “forward-looking statements”. These statements are subject to a number of assumptions, risks, and uncertainties, many of which are and will be beyond the control of the Company including the continuing availability of sufficient borrowing capacity or other financing to fund future principal payments of debt, existing and future governmental regulations and actions of
2
government bodies, natural disasters and unusual weather conditions and other market and competitive conditions.
These statements speak as of the date indicated and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the Company undertakes no obligation to update any such statements.
The projections, while presented with numerical specificity, are necessarily based on a variety of estimates and assumptions which, though considered reasonable by the Company, may not be realized and are inherently subject to significant business, economic, competitive, industry, regulatory, market and financial uncertainties and contingencies, many of which are and will be beyond the Company’s control. The Company cautions that no representations can be made or are made as to the accuracy of the historical financial information or the projections or to the Company’s ability to achieve the projected results. Some assumptions may prove to be inaccurate. Moreover, events and circumstances occurring subsequent to the date on which the Projections were prepared may be different from those assumed, or, alternatively, may have been unanticipated, and thus the occurrence of these events may affect financial results in a materially adverse or materially beneficial manner.
Non-GAAP Information
The financial information reflected in the Disclosed Information does not purport to present the Company’s financial condition in accordance with accounting principles generally accepted in the United States or any other country. The Company’s independent accountants have not audited or performed any review procedures on the Disclosed Information (except insofar as certain historical financial information may have been derived in part from the Company’s historical annual financial statements).
Funding Obligations
The Company has various contracts and other interests that it is required to comply with, some of which include funding obligations, In the event the Company is unable fund its obligations, its interests in certain key contacts and joint venture agreements may be compromised. The Company reserves all of its rights with respect to any legal or other arguments that may be asserted in connection with preserving its interests.
Settlement Proposals
The Disclosure Information includes various settlement proposals made. These settlement proposals should not be relied upon in any manner. Settlement discussions between the Company and the Holders have concluded without an agreement and the offers from the Company have been rescinded.
3
Technical Information Presentation
The Disclosed Information includes slides from Scotiabank with TBMT, TBAZ, BS-4, Parnaiba (Maranhao) and Exploration data. These slides were produced from data provided by the Company. Scoitiabank is an advisor to the Holders.
Rio
de
Jane
iro
| 23
Oct
ober
201
3 |
PRES
ENTA
TIO
N T
O R
OTH
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ILD
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SIN
ES
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E
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ontin
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an in
clud
es 4
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arm
-out
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r U
SD
450m
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il 20
14•
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pare
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s U
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ents
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d of
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vide
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ition
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quid
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ITY
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GFY
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$8,4
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0.0
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0.0
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eeds
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lity
0.0
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atur
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0.0
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Proj
ect O
lym
pic
Oct
ober
7, 2
013
Pres
enta
tion
to N
ote
Hol
der
Adv
isor
s
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd1
Tabl
e of
Con
tent
s
I.Ex
ecut
ive
Sum
mar
y2
II.U
pdat
es to
Bus
ines
s Pl
an4
III.
Revi
sed
Busi
ness
Pla
n11
IV.
Upd
ate
on R
estr
uctu
ring
Issu
es17
I.E
xecu
tive
Su
mm
ary
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd3
Exec
utiv
e Su
mm
ary
fO
ver
the
last
thr
ee w
eeks
the
Com
pany
and
its
advi
sors
hav
e m
ade
impo
rtan
t pro
gres
s on
sev
eral
fron
ts,
incl
udin
g:
•Pr
ogre
ssin
g ho
ok-u
p ac
tivi
ty a
t Tub
arão
Mar
telo
, wit
h fir
st o
il on
sch
edul
e fo
r th
e fir
st h
alf o
f Nov
embe
r
•Re
ceip
t, r
evie
w a
nd d
iscl
osur
e of
new
D&
M r
eser
ve r
epor
t on
Tub
arão
Mar
telo
•N
egot
iati
ons
wit
h En
eva
rega
rdin
g th
e sa
le o
f OG
X M
aran
hão
•Co
mpr
ehen
sive
upd
ate
of b
usin
ess
plan
, inc
ludi
ng t
he id
enti
ficat
ion
of s
igni
fican
t co
st o
ppor
tuni
ties
•O
ngoi
ng re
finem
ent
of li
quid
ity
stat
us a
nd o
utlo
ok, i
nclu
ding
iden
tific
atio
n of
mos
t cri
tica
l nea
r-te
rm
supp
liers
and
upd
ated
13
wee
k ca
sh fl
ow p
roje
ctio
ns
•Co
ntin
uing
pro
gres
s to
war
ds in
crem
enta
l fin
anci
ng, i
nclu
ding
add
itio
nal o
utre
ach,
faci
litat
ion
of d
ue
dilig
ence
, leg
al/s
truc
tura
l ana
lysi
s, a
nd r
ecei
pt o
f fir
st te
rm s
heet
•Fu
rthe
r di
alog
ue w
ith
EBX
and
its
advi
sors
OG
X an
d it
s ad
viso
rs a
ppre
ciat
e th
e op
port
unit
y to
mee
t aga
in w
ith
the
Not
e ho
lder
gro
up's
ad
viso
rs to
pro
vide
an
upda
te o
n re
cent
dev
elop
men
ts a
nd c
onti
nue
rest
ruct
urin
g-re
late
d di
scus
sion
s.
II.
Up
dat
es t
o B
usi
nes
s P
lan
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd5
Busi
ness
Pla
n U
pdat
e O
verv
iew
Sinc
e th
e m
eeti
ng o
n Se
ptem
ber
18, O
GX
has
upda
ted
seve
ral a
ssum
ptio
ns in
its
busi
ness
pla
n.
fRe
duce
d cu
mul
ativ
e SG
&A
(201
4 to
201
8) fr
om $
703
mill
ion
to $
452
mill
ion
mai
nly
thro
ugh
redu
ctio
ns in
he
adco
unt,
ren
t an
d ot
her
expe
nses
fBa
sed
on th
e cu
rren
t st
atus
of n
egot
iati
ons
wit
h En
eva,
OG
X M
aran
hão
is a
ssum
ed to
be
sold
in a
two-
stag
e pr
oces
s w
ith
init
ial p
roce
eds
of $
91 m
illio
n in
Janu
ary
2014
and
the
rece
ipt
of a
n ad
diti
onal
$82
mill
ion
paid
in
mon
thly
incr
emen
ts b
etw
een
July
201
5 an
d A
pril
2016
•A
ggre
gate
pro
ceed
s in
the
sal
e am
ount
to $
173
mill
ion
•O
rigi
nal b
usin
ess
plan
ass
umed
sal
e fo
r $1
80 m
illio
n in
Nov
embe
r 20
13
fN
o fin
anci
ng a
ssum
ed a
t thi
s ti
me,
as
amou
nt a
nd ti
min
g re
mai
n un
cert
ain
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd6
Adj
ustm
ents
to
SG&
A
Ther
e ha
ve b
een
targ
eted
redu
ctio
ns in
SG
&A
tha
t re
duce
d he
adco
unt,
ren
t, a
nd o
ther
exp
ense
s.
fO
GX
man
agem
ent h
as s
tron
gly
redu
ced
SG&
A in
the
last
qua
rter
of 2
013
and
proj
ects
gra
dual
yea
rly
redu
ctio
ns t
here
afte
r •
SG&
A fo
reca
st o
f app
roxi
mat
ely
$100
mill
ion
in 2
014,
wit
h fu
rthe
r re
duct
ions
in fu
ture
yea
rs•
Thes
e re
visi
ons
assu
me
term
inat
ion
of a
ppro
xim
atel
y 15
0 em
ploy
ees
by th
e en
d of
Oct
ober
201
3 an
d ot
her
corp
orat
e ad
just
men
ts
SG&
A C
ompa
riso
n (2
014-
2018
)(U
S$ M
illio
ns)
Busi
ness
Pla
nO
rigi
nal
Curr
ent
Del
ta
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd7
Tuba
rão
Mar
telo
–10
-Yea
r Fo
reca
st (B
usin
ess
Plan
)
(US$
Mill
ions
)
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Show
n be
fore
app
lyin
g ta
x at
trib
utes
at t
he o
pera
ting
com
pany
, whi
ch h
as s
igni
fican
t tax
-loss
car
ry fo
rwar
ds.
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Key
Ope
rati
ng D
rive
rsA
vera
ge P
rodu
ctio
n (k
bblp
d)19
.414
.124
.826
.122
.520
.719
.317
.716
.215
.0To
tal P
rodu
ctio
n (k
bbl)
7,07
3.1
5,14
6.4
9,09
6.6
9,51
6.8
8,22
8.8
7,55
5.2
7,07
9.8
6,46
7.9
5,90
1.8
5,47
1.1
Dai
ly S
ales
(kbb
lpd)
19.7
15.1
24.1
26.3
22.0
22.0
17.6
17.7
17.6
15.4
Tota
l Sal
es (k
bbl)
7,20
0.0
5,60
0.0
8,80
0.0
9,60
0.0
8,00
0.0
8,00
0.0
6,40
0.0
6,40
0.0
6,40
0.0
5,60
0.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0%
Dis
coun
t to
Bre
nt F
utur
e Pr
ice
Benc
hmar
k(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)(4
.8%
)Q
ualit
y-A
djus
ted
Oil
Pric
e ($
/bbl
)10
0.0
100.
010
0.0
100.
010
0.0
100.
010
0.0
100.
010
0.0
100.
0Fr
eigh
t an
d In
sura
nce
Cost
s ($
/bbl
)2.
02.
02.
02.
02.
02.
02.
02.
02.
02.
0N
et R
ealiz
able
Oil
Pric
e ($
/bbl
)98
.098
.098
.098
.098
.098
.098
.098
.098
.098
.0
Key
Fina
ncia
lsRe
venu
e$7
05.6
$548
.8$8
62.4
$940
.8$7
84.0
$784
.0$6
27.2
$627
.2$6
27.2
$548
.8CO
GS
(290
.9)
(311
.7)
(274
.3)
(272
.5)
(279
.1)
(294
.4)
(252
.9)
(277
.7)
(307
.7)
(317
.2)
Roya
ltie
s an
d Sp
ecia
l Par
tici
pati
on(6
5.4)
(50.
6)(8
6.1)
(106
.3)
(83.
7)(8
1.3)
(58.
1)(5
8.1)
(58.
0)(5
0.8)
Adm
inis
trat
ive
G&
A–
––
––
––
––
–Ex
plor
atio
n Ex
pens
e (R
enta
l)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)EB
ITD
A$3
49.2
$186
.4$5
01.9
$561
.9$4
21.1
$408
.2$3
16.1
$291
.4$2
61.3
$180
.7%
Mar
gin
49.5
%34
.0%
58.2
%59
.7%
53.7
%52
.1%
50.4
%46
.5%
41.7
%32
.9%
Cape
x($
187.
5)($
455.
1)($
217.
1)–
––
––
––
G&
A A
lloca
ted
to P
P&E
(13.
7)(1
3.7)
(9.2
)–
––
––
––
Chan
ge in
Wor
king
Cap
ital
17.4
23.2
(8.3
)1.
5(1
1.2)
20.0
(34.
0)(7
.5)
26.3
6.8
Taxe
s(1)
(76.
3)(2
9.3)
(99.
0)(1
11.4
)(7
6.8)
(72.
4)(5
4.3)
(45.
9)(3
5.7)
(15.
7)A
band
onm
ent
Cost
––
––
––
––
––
FCF
$89.
1($
288.
6)$1
68.4
$452
.0$3
33.1
$355
.8$2
27.7
$237
.9$2
51.9
$171
.8
NPV
1,37
9.2
Dis
coun
t Ra
te10
.0%
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd8
Tuba
rão
Mar
telo
–10
-Yea
r Fo
reca
st (D
eGol
yer
& M
acN
augh
ton
Fore
cast
)
(US$
Mill
ions
)
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Show
n be
fore
app
lyin
g ta
x at
trib
utes
at t
he o
pera
ting
com
pany
, whi
ch h
as s
igni
fican
t tax
-loss
car
ry fo
rwar
ds.
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Key
Ope
rati
ng D
rive
rsA
vera
ge P
rodu
ctio
n (k
bblp
d)16
.211
.820
.821
.818
.917
.316
.214
.813
.512
.5To
tal P
rodu
ctio
n (k
bbl)
5,91
7.3
4,30
5.4
7,61
0.2
7,96
1.7
6,88
4.2
6,32
0.6
5,92
2.9
5,41
1.0
4,93
7.4
4,57
7.1
Dai
ly S
ales
(kbb
lpd)
17.4
11.2
19.6
22.0
19.7
17.4
15.2
15.3
13.0
13.0
Tota
l Sal
es (k
bbl)
6,40
0.0
4,00
0.0
7,20
0.0
8,00
0.0
7,20
0.0
6,40
0.0
5,60
0.0
5,60
0.0
4,80
0.0
4,80
0.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
10.0
$110
.0$1
10.0
$110
.0$1
10.0
$110
.0$1
10.0
$110
.0$1
10.0
$110
.0%
Dis
coun
t to
Bre
nt F
utur
e Pr
ice
Benc
hmar
k(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)(4
.5%
)Q
ualit
y-A
djus
ted
Oil
Pric
e ($
/bbl
)10
5.0
105.
010
5.0
105.
010
5.0
105.
010
5.0
105.
010
5.0
105.
0Fr
eigh
t an
d In
sura
nce
Cost
s ($
/bbl
)2.
02.
02.
02.
02.
02.
02.
02.
02.
02.
0N
et R
ealiz
able
Oil
Pric
e ($
/bbl
)10
3.0
103.
010
3.0
103.
010
3.0
103.
010
3.0
103.
010
3.0
103.
0
Key
Fina
ncia
lsRe
venu
e$6
59.2
$412
.0$7
41.6
$824
.0$7
41.6
$659
.2$5
76.8
$576
.8$4
94.4
$494
.4CO
GS
(301
.5)
(244
.9)
(284
.5)
(260
.1)
(291
.4)
(275
.3)
(258
.3)
(285
.6)
(271
.4)
(315
.9)
Roya
ltie
s an
d Sp
ecia
l Par
tici
pati
on(5
9.7)
(37.
3)(6
9.9)
(83.
7)(6
7.2)
(59.
7)(5
2.2)
(52.
2)(4
4.8)
(44.
8)A
dmin
istr
ativ
e G
&A
––
––
––
––
––
Expl
orat
ion
Expe
nse
(Ren
tal)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
EBIT
DA
$297
.9$1
29.7
$387
.0$4
80.1
$383
.0$3
24.1
$266
.1$2
38.9
$178
.1$1
33.6
% M
argi
n45
.2%
31.5
%52
.2%
58.3
%51
.6%
49.2
%46
.1%
41.4
%36
.0%
27.0
%
Cape
x($
194.
5)($
455.
1)($
217.
1)–
––
––
––
G&
A A
lloca
ted
to P
P&E
(13.
7)(1
3.7)
(9.2
)–
––
––
––
Chan
ge in
Wor
king
Cap
ital
37.0
(36.
0)8.
9(3
.1)
12.5
2.8
(19.
5)8.
0(1
1.7)
10.0
Taxe
s(1)
(54.
9)(1
2.3)
(58.
1)(7
7.2)
(52.
8)(4
1.4)
(30.
3)(2
1.0)
(9.0
)(1
.5)
Aba
ndon
men
t Co
st–
––
––
––
––
–FC
F$7
1.7
($38
7.3)
$111
.6$3
99.8
$342
.7$2
85.5
$216
.3$2
25.9
$157
.5$1
42.1
NPV
984.
0D
isco
unt
Rate
10.0
%
III.
Rev
ised
Bu
sin
ess
Pla
n
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd10
OG
X W
eekl
y Ca
sh F
low
(as
of S
epte
mbe
r 30
)
fN
ear
term
liqu
idit
y pr
ojec
tion
s sh
ow 1
3-w
eek
cash
flow
fore
cast
thr
ough
yea
r en
d 20
13
•Ca
sh b
alan
ces
and
cash
flow
s ex
clud
e O
GX
Mar
anhã
o, a
s ca
sh is
not
cur
rent
ly e
xpec
ted
to fl
ow in
or
out
prio
r to
a s
ale
fAt
the
end
of S
epte
mbe
r, O
GX
had
~$82
mill
ion
(~R$
180
mill
ion)
in u
nres
tric
ted
cash
•“F
irst
Oil”
at
Mar
telo
pro
ject
ed fo
r m
id-N
ovem
ber,
wit
h in
itial
sal
es in
Janu
ary
(bey
ond
the
curr
ent
proj
ecti
on p
erio
d)
•Sa
le o
f Mar
anhã
o as
sets
ass
umed
to
clos
e in
Janu
ary
(als
o be
yond
the
cur
rent
pro
ject
ion
peri
od)
•A
ssum
es E
neva
(MPX
) will
not
mak
e ~$
16 m
illio
n re
imbu
rsem
ent
paym
ent
to O
GX
in O
ctob
er
fA
ssum
es ~
$89
mill
ion
of e
xpec
ted
cash
dis
burs
emen
ts t
o su
pplie
rs t
hrou
gh y
ear
end,
whi
ch p
aym
ents
are
onl
y m
ade
to
crit
ical
ven
dors
who
cur
rent
ly p
erfo
rm s
ervi
ces
at t
he M
arte
lo fi
eld
to g
et fi
rst
oil p
rodu
ctio
n up
and
run
ning
fA
ssum
es t
hat
OG
X w
ill d
ispu
te a
nd n
ot m
ake
a ~$
17 m
illio
n im
port
tax
paym
ent
othe
rwis
e du
e in
Oct
ober
rel
ated
to
OSX
-3
fW
eekl
y ca
sh fl
ow fo
reca
st d
oes
not
yet
incl
ude
any
proc
eeds
from
a D
IP lo
an, n
or im
pact
of a
judi
cial
rec
over
y pr
ocee
ding
, du
e to
cur
rent
unc
erta
inti
es in
am
ount
and
tim
ing
•Ju
dici
al r
ecov
ery
anal
ysis
in p
roce
ss, b
ut w
ill li
kely
incr
ease
nea
r te
rm c
ash
need
Thir
teen
wee
k ca
sh fl
ow a
naly
sis
is b
ased
on
the
follo
win
g as
sum
ptio
ns.
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd11
Val
uati
on S
umm
ary
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Illus
trat
ive
as o
f 1/1
/201
4. B
ased
on
NPV
of e
ach
proj
ect u
sing
a 1
0% d
isco
unt r
ate.
Exp
lora
tion
Pro
ject
is d
isco
unte
d at
20%
.(2
)In
crea
se in
cum
ulat
ive
loss
from
R$3
.0B
in M
ay 2
013
to R
$6.9
B in
July
201
3; in
crea
se d
ue to
R$3
.6B
impa
irm
ent i
n Ju
ne 2
013
and
OSX
set
tlem
ent.
(3)
Sale
of O
GX
Mar
anhã
o in
the
curr
ent b
usin
ess
plan
ass
umes
init
ial e
quit
y pr
ocee
ds o
f $91
mill
ion
rece
ived
in Ja
nuar
y 20
14 a
ndad
diti
onal
pay
men
ts o
f $82
m
illio
n be
twee
n Ju
ly 2
015
and
Apr
il 20
16. A
ll pa
ymen
ts a
re d
isco
unte
d at
a 1
0% d
isco
unt r
ate.
The
sal
e of
OG
X M
aran
hão
in th
e or
igin
al b
usin
ess
plan
was
as
sum
ed to
occ
ur in
Nov
embe
r 20
13.
NPV
doe
s no
t inc
lude
the
$3 m
illio
n in
pro
ceed
s fr
om th
e st
ock
purc
hase
of P
arna
íba
B.V
.
OG
X ba
se c
ase
oper
atin
g m
odel
sug
gest
s an
ent
erpr
ise
valu
e of
$2.
7 bi
llion
. Th
e or
igin
al b
usin
ess
plan
sug
gest
ed a
n en
terp
rise
val
ue o
f $2.
4 bi
llion
.
2P D
&M
res
erve
leve
ls
wou
ld im
ply
Tuba
rão
Mar
telo
NPV
of $
984
mill
ion
and
ente
rpri
se
valu
e $2
.3 b
illio
n
Illus
trat
ive
Val
uati
on(1
)Bu
sine
ss P
lan
(US$
Mill
ions
)O
rigi
nal
Curr
ent
Del
ta
Com
men
tsTu
barã
o A
zul
($82
)($
82)
$ –
Tuba
rão
Mar
telo
1,42
61,
379
(47)
Incr
ease
in d
iese
l cos
tsA
tlan
ta (B
S-4)
1,08
11,
072
(9)
Cape
x fr
om 2
013
dela
yed
and
push
ed t
o 20
14Ex
plor
atio
n Pr
ojec
t27
828
13
Expl
orat
ion
Cape
x(2
23)
(223
)–
Corp
orat
e Ex
plor
atio
n Ex
pens
e(1
13)
(92)
21Te
rmin
atio
n of
em
ploy
ees
and
othe
r SG
&A
rea
lignm
ent
Corp
orat
e SG
&A
(532
)(4
20)
112
Term
inat
ion
of e
mpl
oyee
s an
d ot
her
SG&
A r
ealig
nmen
t
Tax
Att
ribu
tes(2
)41
064
923
9Ba
sed
on c
hang
e in
tax
att
ribu
tes
Mar
anhã
o Sa
le(3
)18
015
9(2
1)M
ore
refin
ed d
eal d
iscu
ssio
nsEn
terp
rise
Val
ue$2
,425
$2,7
23$2
99
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd12
2014
E20
15E
2016
E20
17E
2018
E20
19E
2020
E
Key
Ope
rati
ng D
rive
rsTo
tal P
rodu
ctio
n (k
bbl)
7,07
3.1
5,
146.
4
9,09
6.6
16
,346
.9
20,7
39.5
17,7
09.1
15,5
77.4
Tota
l Sal
es (k
bbl)
7,20
0.0
5,
600.
0
8,80
0.0
16
,320
.0
20,4
80.0
18,2
40.0
14,7
20.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
Ave
rage
Rea
lized
Oil
Pric
e ($
/bbl
)98
.098
.098
.094
.491
.692
.191
.7
Key
Fina
ncia
lsRe
venu
e$7
05.6
$548
.8$8
62.4
$1,5
32.2
$1,8
82.2
$1,6
85.1
$1,3
59.4
COG
S(2
90.9
)(3
11.7
)(2
74.3
)(3
81.8
)(4
27.4
)(4
43.9
)(4
00.3
)Ro
yalt
ies
and
Spec
ial P
arti
cipa
tion
(65.
4)(5
0.6)
(86.
1)(1
58.7
)(2
16.8
)(1
90.7
)(1
58.0
)A
dmin
istr
ativ
e G
&A
(61.
4)
(61.
3)
(61.
3)
(49.
0)
(56.
8)
(39.
8)
(33.
8)
Expl
orat
ion
Expe
nse
(27.
6)
(31.
3)
(8.9
)
(7.2
)
(5
.8)
(4
.1)
(3
.5)
EB
ITD
A$2
60.3
$93.
9$4
31.8
$935
.4$1
,175
.4$1
,006
.6$7
63.6
Cash
Tax
es(2
1.5)
16.0
(42.
2)(1
28.4
)(1
70.8
)(1
39.1
)(9
9.9)
Chan
ge in
Wor
king
Cap
ital
(43.
7)13
7.6
(49.
8)(5
3.5)
(44.
1)21
.8(3
9.7)
Expl
orat
ion
Cape
x(0
.2)
(2.5
)(0
.6)
(124
.9)
(124
.8)
–(9
5.0)
Dev
elop
men
t Ca
pex
(235
.2)
(677
.7)
(567
.0)
(133
.9)
––
–G
&A
Allo
cate
d to
PP&
E(1
9.2)
(19.
2)(1
6.5)
(8.8
)–
––
Aba
ndon
men
t Co
st(8
2.0)
––
––
––
Ope
rati
onal
Fre
e Ca
sh F
low
($14
1.4)
($45
1.8)
($24
4.4)
$486
.1$8
35.7
$889
.3$5
29.1
M&
A/F
inan
cing
Cas
h Fl
ows:
Sale
of M
aran
hão
(Gro
ss P
roce
eds)
397.
449
.132
.7–
––
–U
niti
zati
on P
aym
ent
to B
P(7
.0)
––
––
––
Tuba
rão
Mar
telo
Far
m-O
ut–
––
––
––
Fina
ncia
l Inc
ome
––
––
1.8
––
Der
ivat
ive
Liqu
idat
ion
16.8
––
––
––
Rest
ruct
urin
g Fe
es a
nd E
xpen
ses
(27.
3)–
––
––
–Ca
sh In
tere
st(1
3.3)
––
––
––
Man
dato
ry A
mor
tiza
tion
(293
.2)
––
––
––
Tota
l M&
A/F
inan
cing
Cas
h Fl
ows
$73.
5$4
9.1
$32.
7–
$1.8
––
Net
Cha
nge
in C
ash
($67
.9)
($40
2.7)
($21
1.6)
$486
.1$8
37.5
$889
.3$5
29.1
Begi
nnin
g Ca
sh B
alan
ce($
156.
5)($
224.
4)($
627.
1)($
838.
8)($
352.
7)$4
84.8
$1,3
74.1
Endi
ng C
ash
Bala
nce
($22
4.4)
($62
7.1)
($83
8.8)
($35
2.7)
$484
.8$1
,374
.1$1
,903
.1
Long
-Ter
m C
ash
Flow
Sum
mar
y (B
usin
ess
Plan
)(1)
(US$
Mill
ions
)
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Cash
is s
how
n be
fore
pot
enti
al fa
rm-o
uts,
fina
ncin
gs a
nd s
ales
.(2
)D
oes
not
incl
ude
the
$3 m
illio
n in
pro
ceed
s fr
om t
he s
tock
pur
chas
e of
Par
naíb
a B.
V.
(2)
Pro
ject
Oly
mp
ic
Bla
ckst
one/
Laza
rd13
2014
E20
15E
2016
E20
17E
2018
E20
19E
2020
E
Key
Ope
rati
ng D
rive
rsTo
tal P
rodu
ctio
n (k
bbl)
5,91
7.3
4,
305.
4
7,61
0.2
14
,791
.8
19,3
94.9
16,4
74.5
14,4
20.6
Tota
l Sal
es (k
bbl)
6,40
0.0
4,
000.
0
7,20
0.0
14
,720
.0
19,6
80.0
16,6
40.0
13,9
20.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
Ave
rage
Rea
lized
Oil
Pric
e ($
/bbl
)10
3.0
103.
010
3.0
96.4
93.0
92.9
92.7
Key
Fina
ncia
lsRe
venu
e$6
59.2
$412
.0$7
41.6
$1,4
15.4
$1,8
39.8
$1,5
60.3
$1,3
09.0
COG
S(3
01.5
)(2
44.9
)(2
84.5
)(3
69.4
)(4
39.6
)(4
24.8
)(4
05.7
)Ro
yalt
ies
and
Spec
ial P
arti
cipa
tion
(59.
7)(3
7.3)
(69.
9)(1
36.2
)(2
00.3
)(1
69.1
)(1
52.2
)A
dmin
istr
ativ
e G
&A
(61.
4)
(61.
3)
(61.
3)
(49.
0)
(56.
8)
(39.
8)
(33.
8)
Expl
orat
ion
Expe
nse
(27.
6)
(31.
3)
(8.9
)
(7.2
)
(5
.8)
(4
.1)
(3
.5)
EB
ITD
A$2
09.0
$37.
2$3
16.9
$853
.6$1
,137
.3$9
22.5
$713
.7
Cash
Tax
es(6
.2)
27.5
(11.
5)(1
04.4
)(1
54.0
)(1
17.4
)(8
2.2)
Chan
ge in
Wor
king
Cap
ital
(23.
5)78
.5(3
2.5)
(58.
0)(2
0.4)
4.6
(25.
2)Ex
plor
atio
n Ca
pex
(0.2
)(2
.5)
(0.6
)(1
24.9
)(1
24.8
)–
(95.
0)D
evel
opm
ent
Cape
x(2
42.2
)(6
77.7
)(5
67.0
)(1
33.9
)–
––
G&
A A
lloca
ted
to P
P&E
(19.
2)(1
9.2)
(16.
5)(8
.8)
––
–A
band
onm
ent
Cost
(82.
0)–
––
––
–O
pera
tion
al F
ree
Cash
Flo
w($
164.
2)($
556.
1)($
311.
2)$4
23.7
$838
.1$8
09.8
$511
.3
M&
A/F
inan
cing
Cas
h Fl
ows:
Sale
of M
aran
hão
(Gro
ss P
roce
eds)
397.
449
.132
.7–
––
–U
niti
zati
on P
aym
ent
to B
P(7
.0)
––
––
––
Tuba
rão
Mar
telo
Far
m-O
ut–
––
––
––
Fina
ncia
l Inc
ome
––
––
0.4
––
Der
ivat
ive
Liqu
idat
ion
16.8
––
––
––
Rest
ruct
urin
g Fe
es a
nd E
xpen
ses
(19.
1)–
––
––
–Ca
sh In
tere
st(1
3.3)
––
––
––
Man
dato
ry A
mor
tiza
tion
(293
.2)
––
––
––
Tota
l M&
A/F
inan
cing
Cas
h Fl
ows
$81.
7$4
9.1
$32.
7–
$0.4
––
Net
Cha
nge
in C
ash
($82
.5)
($50
7.0)
($27
8.5)
$423
.7$8
38.5
$809
.8$5
11.3
Begi
nnin
g Ca
sh B
alan
ce($
156.
5)($
239.
0)($
746.
0)($
1,02
4.5)
($60
0.9)
$237
.6$1
,047
.4En
ding
Cas
h Ba
lanc
e($
239.
0)($
746.
0)($
1,02
4.5)
($60
0.9)
$237
.6$1
,047
.4$1
,558
.7
Long
-Ter
m C
ash
Flow
Sum
mar
y (D
eGol
yer
& M
acN
augh
ton
Fore
cast
)(1)
(US$
Mill
ions
)
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Cash
is s
how
n be
fore
pot
enti
al fa
rm-o
uts,
fina
ncin
gs a
nd s
ales
.(2
)D
oes
not
incl
ude
the
$3 m
illio
n in
pro
ceed
s fr
om t
he s
tock
pur
chas
e of
Par
naíb
a B.
V.
(2)
IV.
Up
dat
e on
Res
tru
ctu
rin
g Is
sues
Proj
ect O
lym
pic
Sept
embe
r 20
13
Pres
enta
tion
to N
ote
Hol
ders
Pro
ject
Oly
mp
ic
Bla
ckst
one
1
Tabl
e of
Con
tent
s
I.Bu
sine
ss P
lan
Sum
mar
y2
II.Re
leva
nt R
estr
uctu
ring
Issu
es21
App
endi
x29
I.B
usi
nes
s P
lan
Su
mm
ary
Pro
ject
Oly
mp
ic
Bla
ckst
one
3
OG
X: A
ddre
ssin
g N
ear-
Term
Cha
lleng
esI.
Bu
sin
ess
Pla
n S
um
mar
y
fSt
reng
then
bal
ance
she
et b
y fo
cusi
ng o
n de
bt re
stru
ctur
ing
and
asse
t al
loca
tion
f
Focu
s ca
pita
l and
oth
er r
esou
rces
on
Tuba
rão
Mar
telo
and
Atl
anta
fD
evel
op fo
ur re
cent
ly a
cqui
red
expl
orat
ion
bloc
ks fr
om B
razi
l’s 1
1thRo
und
Auc
tion
sf
Expa
nd p
artn
ersh
ips
wit
h re
puta
ble
inte
rnat
iona
l maj
ors
who
bri
ng e
xper
ienc
e an
dre
sour
ces
fBu
y ea
rly
asse
ts, f
ind
oil a
nd m
onet
ize
fO
ver-
ambi
tiou
s ta
rget
s
fSi
gnifi
cant
dro
p in
mar
ket v
alue
fSt
rain
ed c
ash
posi
tion
Rece
nt P
ast:
Too
Muc
h O
ptim
ism
, Not
Eno
ugh
Oil
Look
ing
Ahea
d: R
eset
and
Res
ize O
ur A
mbi
tions
Pro
ject
Oly
mp
ic
Bla
ckst
one
4
OG
X O
wne
rshi
p an
d Co
rpor
ate
Stru
ctur
e
Petr
óleo
e G
ás
Part
icip
açõe
s S.A
.
Petr
óleo
e
Gás
S.A
.
Mar
anhã
oPe
tról
eo e
Gás
S.A
.
50
.2%
49
.8%
99.9
9%66
.67%
Inte
rnat
iona
l
OG
XAus
tria
100%
100%
�27
blo
cks
�O
GX o
pera
tes
23 o
f th
ose
bloc
ks
�8
bloc
ks in
the
Par
naíb
a Bas
in
�O
GX o
pera
tes
all b
lock
s
�M
PX h
olds
33.
3%
Free
Flo
at
I.B
usi
nes
s P
lan
Su
mm
ary
fCo
nces
sion
s fo
r 27
blo
cks
fO
GX
oper
ates
23
of t
hose
bl
ocks
fLe
asin
g co
ntra
cts
wit
h O
SX
f8
bloc
ks in
the
Par
naíb
a Ba
sin
fO
GX
oper
ates
all
bloc
ks
fM
PX h
olds
33.
3%
Pro
ject
Oly
mp
ic
Bla
ckst
one
5
OG
X A
sset
Ove
rvie
w: D
iver
sifie
d A
sset
Por
tfol
io
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Four
blo
cks
acqu
ired
in th
e 11
th b
iddi
ng ro
und.
(2)
BS-4
and
blo
cks
from
11t
h bi
ddin
g ro
und
are
awai
ting
AN
P ap
prov
al.
(3)
Show
n at
100
% o
wne
rshi
p, a
ssum
ing
no P
etro
nas
tran
sact
ion.
13
2
4
5
6
78
11th
Bid
ding
Rou
nd(1
)
Curr
ent P
ortf
olio
(2)
f7
offs
hore
blo
cks
Cam
pos
Basi
n
f8
onsh
ore
bloc
ks
Parn
aíba
Bas
in
f3
offs
hore
blo
cks
Sant
os B
asin
f5
offs
hore
blo
cks
Pará
-Mar
anhã
o Ba
sin
f3
offs
hore
blo
cks
Espí
rito
San
to B
asin
f5
onsh
ore
bloc
ks
Colo
mbi
an B
asin
s
f2
offs
hore
blo
cks
Poti
guar
Bas
in
f2
offs
hore
blo
cks
Cear
á Ba
sin
1 5 876432
Esti
mat
ed n
et t
o O
GX
reco
vera
ble
volu
me
(P50
)
Tota
lOil
(Mbo
e)23
8Tu
barã
o M
arte
lo F
ield
(3)
126
Atl
anta
Fiel
d88
Oliv
a Fi
eld
24
Tota
l Gas
(Bn
m³)
6.8
Gav
ião
Real
, Azu
l and
Bra
nco
field
s 6.
8
Esti
mat
ed n
et t
o O
GX
reco
vera
ble
volu
me
(P50
)
Tulu
m a
ccum
ulat
ion
(Mbo
e)70
Parn
aíba
Gas
Dis
cove
ries
(Bn
m³)
3.9
Unr
iske
d ne
t to
OG
X re
cove
rabl
e vo
lum
e (P
50)
Expl
orat
ion
Proj
ect 1
1th
bidd
ing
roun
d pr
ospe
cts
(Mbo
e)1,
553
Cear
á Ba
sin
362
Poti
guar
Bas
in1,
193
Parn
aíba
(Bn
m³)
39Co
lom
bia
-Low
er M
agda
lena
Val
ley
(Bn
m³)
152
Dis
cove
ries
Prod
ucti
on a
nd D
evel
opm
ent
Ass
ets
Pros
pect
s
I.B
usi
nes
s P
lan
Su
mm
ary
Pro
ject
Oly
mp
ic
Bla
ckst
one
6
Dev
elop
men
t: T
ubar
ão M
arte
lo F
ield
fEs
tim
ated
net
rec
over
able
vol
ume
of ~
126
Mbo
e(1)
fG
eolo
gy: A
lbo-
Ceno
man
ian
Carb
onat
e
fPe
rmea
bilit
y: 1
00 m
D
fO
il Q
ualit
y: 2
1°A
PI
fW
ater
dep
th o
f 120
met
ers
fSt
art-
up e
xpec
ted
for
4Q13
(OSX
-3 d
eliv
ered
Se
ptem
ber
2013
)
f7
prod
ucti
on w
ells
+ 3
wat
er in
ject
ion
wel
ls
fEx
pect
ed in
itia
l pro
duct
ion
per
wel
l: 5-
7 kb
oepd
fEx
pect
ed d
eclin
e ra
te: 8
-10%
per
yea
r
Stra
tegi
c Pa
rtne
rshi
p w
ith
Petr
onas
fO
GX
ente
red
into
a s
trat
egic
agr
eem
ent
wit
h Pe
tron
as t
o se
ll a
40%
sta
ke in
BM
-C-3
9 an
d BM
-C-
40 b
lock
s fo
r up
to
$850
mill
ion
fFi
nanc
ial c
losi
ng s
till
pend
ing
(fin
anci
al c
ondi
tion
an
d vo
lum
es)
Bloc
k BM
-C-3
9
Bloc
k BM
-C-4
0
Bloc
ks B
M-C
-39
and
BM-C
-40
in t
he C
ampo
s Ba
sin
Expl
orat
ion
wel
ls d
rille
d
Prod
ucti
on w
ells
dri
lled
I.B
usi
nes
s P
lan
Su
mm
ary
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Show
n at
100
% o
wne
rshi
p, a
ssum
ing
no P
etro
nas
tran
sact
ion.
Pro
ject
Oly
mp
ic
Bla
ckst
one
7
Dev
elop
men
t: T
ubar
ão M
arte
lo F
ield
(con
t’d)
fA
ctiv
itie
s to
Fir
st O
il
•Pi
les
5 an
d 6
•Ch
ains
5 a
nd 6
•FP
SO m
oori
ng
•W
ell 8
H c
onne
ctio
n
fFi
rst
oil i
n se
cond
hal
f of N
ovem
ber
fM
ain
Expe
ndit
ures
to
Firs
t O
il
•O
SX-3
Tax
es P
aym
ent:
$16
mill
ion
•O
SX-3
O&
M +
Lea
sing
:
$25
mill
ion
(Oct
and
Nov
)
•G
E:
$25
mill
ion
•W
ells
trea
m:
$1
2 m
illio
n
•O
ther
:
$
25 m
illio
n
•To
tal
$1
03 m
illio
n
Bloc
ks B
M-C
-39
and
BM-C
-40
in t
he C
ampo
s Ba
sin
I.B
usi
nes
s P
lan
Su
mm
ary
Pro
ject
Oly
mp
ic
Bla
ckst
one
8
Dev
elop
men
t: A
tlan
ta a
nd O
liva
Fiel
ds
fAt
lant
a: E
stim
ated
net
rec
over
able
vol
ume
of 8
8 M
boe
fO
liva:
Est
imat
ed n
et r
ecov
erab
le v
olum
e of
24
Mbo
e
fG
eolo
gy: E
ocen
e Sa
ndst
one
fPe
rmea
bilit
y: 5
,000
mD
(Atl
anta
); 3
,000
mD
(O
liva)
fO
il Q
ualit
y: 1
3.5–
15.5
°A
PI
fW
ater
dep
th o
f ~1,
500
met
ers
fAt
lant
a st
art-
up e
xpec
ted
for
2015
/16
fCo
nces
sion
Agr
eem
ent:
•O
wne
rshi
p: 4
0% O
GX
+ 30
% Q
GEP
(Ope
rato
r)
+ 30
% B
arra
Ene
rgia
BS-4
Blo
ck in
the
San
tos
Basi
n
I.B
usi
nes
s P
lan
Su
mm
ary
Pro
ject
Oly
mp
ic
Bla
ckst
one
9
Prod
ucti
on: T
ubar
ão A
zul F
ield
Expl
orat
ion
wel
ls d
rille
d
Prod
ucti
on w
ells
dri
lled
Bloc
k BM
-C-4
1
fEs
tim
ated
rec
over
able
vol
ume
of ~
5.3
Mbo
e (4
.8 M
boe
alre
ady
prod
uced
)
fG
eolo
gy: A
lbia
n Ca
rbon
ate
fPe
rmea
bilit
y: 1
0 m
D
fO
il Q
ualit
y: 2
1°A
PI
fW
ater
dep
th o
f 140
met
ers
fA
vera
ge d
aily
cos
t (la
st q
uart
er):
~$4
23k
11.0
9.1
9.3
10.2
10.9
1.8
6.8
9.7
0.9
Effe
ctiv
e
Pr
oduc
tion
Day
s1Q
122Q
123Q
124Q
121Q
13A
pr-1
3M
ay-1
3Ju
n-13
Jul-1
3
OG
X-26
HP
6079
5792
8616
3130
3
OG
X-68
HP
–47
9292
73–
1130
3
TBA
Z-1H
P–
––
–74
––
––
Tota
l60
126
149
184
233
1642
606
Ave
rage
per
of
fsho
re w
ell
(kbo
epd)
11.0
6.6
5.8
5.1
4.2
3.4
5.0
4.8
4.6
Ave
rage
Qua
rter
ly /
Mon
thly
Pro
duct
ion
(kbo
epd)
Cam
pos
Basi
n
I.B
usi
nes
s P
lan
Su
mm
ary
Pro
ject
Oly
mp
ic
Bla
ckst
one
10
Prod
ucti
on: M
aran
hão
Gav
ião
Real
Ave
rage
Mon
thly
Pro
duct
ion
(kbo
epd)
Parn
aíba
Bas
in
I.B
usi
nes
s P
lan
Su
mm
ary
Gav
ião
Rea
lG
aviã
o A
zul
Gav
ião
Bran
co
Esti
mat
ed n
et
reco
vera
ble
volu
me
5.2
bn m
³ (0.
3 bn
m³ a
lrea
dy
prod
uced
)
0.7
bn m
³1.
2 bn
m³
Geo
logy
Dev
onia
n Sa
ndst
one
Dev
onia
n Sa
ndst
one
Dev
onia
n Sa
ndst
one
Perm
eabi
lity
70 m
D10
mD
70 m
D
Den
sity
0.60
0.60
0.60
Loca
tion
Ons
hore
Ons
hore
Ons
hore
Last
Qua
rter
O
p. M
argi
n73
.5%
3.2
5.5
6.8
12.1
11.4
13.3
12.8
Jan-
13Fe
b-13
Mar
-13
Apr
-13
May
-13
Jun-
13Ju
l-13
Pro
ject
Oly
mp
ic
Bla
ckst
one
11
I.B
usi
nes
s P
lan
Su
mm
ary
Prod
ucti
on C
urve Pr
oduc
tion
Cur
ve (b
bl/d
)A
vera
ge P
rodu
ctio
n (k
bbl/
d)
0
10,0
00
20,0
00
30,0
00
40,0
00
50,0
00
60,0
00
70,0
00
80,0
00
90,0
00
1M1312M1311M1410M15
9M168M177M186M195M204M213M222M231M24
12M2411M2510M26
9M278M287M296M305M314M323M33
Tuba
rão
Azu
lTu
barã
o M
arte
loA
tlan
taEx
pl. P
roj.
6
19 14
25 45
57 49
43 37
33 29
27
50 79
78
77
74 59
020406080100
120
140
160
180
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Tuba
rão
Azu
lTu
barã
o M
arte
loA
tlan
taEx
pl. P
roj.
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Show
n at
100
% o
wne
rshi
p, a
ssum
ing
no P
etro
nas
tran
sact
ion.
(2)
Excl
udes
Oliv
a fie
ld.
Rec
over
able
Vol
umes
OG
XPa
rtne
rsTo
tal
Mbb
l%
Mbb
l%
Mbb
lTu
barã
o A
zul
0.0
0%0.
00%
0.0
Tuba
rão
Mar
telo
(1)
126.
110
0%0.
00%
126.
1A
tlan
ta88
.340
%13
2.5
60%
220.
8Ex
plor
atio
n Pr
ojec
t17
4.1
50%
174.
150
%34
8.3
Tota
l(2)
388.
556
%30
6.6
44%
695.
2
Pro
ject
Oly
mp
ic
Bla
ckst
one
12
Illus
trat
ive
OG
X V
alua
tion
at
Begi
nnin
g of
Yea
r 20
14
(US$
Mill
ions
)
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Add
itio
nal e
quit
y fr
om E
quit
y Ri
ghts
Off
erin
g ne
t of f
ees
and
expe
nses
.(2
)Ex
plor
atio
n pr
ojec
t fro
m 1
1th
bid
roun
d (c
ash
flow
s di
scou
nted
@ 2
0% p
y).
(3)
Tuba
rão
Azu
l ref
lect
s es
tim
ated
aba
ndon
men
t cos
ts.
(4)
Tax
attr
ibut
es v
alue
d us
ing
a 10
% d
isco
unt r
ate
appl
ied
to t
he t
ax-a
ffec
ted
usag
e of
net
loss
car
ry-f
orw
ards
. The
app
licab
le ta
xra
te is
34%
.(5
)In
clud
es c
orpo
rate
SG
&A
, cor
pora
te o
pex
and
tax
attr
ibut
es.
I.B
usi
nes
s P
lan
Su
mm
ary
fIll
ustr
ativ
e va
luat
ion
usin
g a
10%
dis
coun
t ra
te fo
r Tu
barã
o M
arte
lo a
nd A
tlan
ta a
nd a
20%
dis
coun
t ra
te fo
r th
e ex
plor
atio
n pr
ojec
t
Corp
orat
e SG
&A
and
Ope
x($
532)
Tax
Att
ribu
tes(4
)$4
10
$486
$2,4
31
$1,4
26
$1,0
81
$278
($82
)
($33
6)($
122)
($30
0)
Cash
(01/
01/1
4)Tu
barã
oM
arte
loA
tlan
ta(B
S-4)
Expl
. Pro
j.(B
id)
Tuba
rão
Azu
lN
PVEx
plor
atio
n(I
nc. 1
1th
Rou
nd B
id)
NPV
Corp
orat
eSG
&A
and
Ope
x
Deb
tN
PV O
GX
(No
Ups
ides
)(2
)(3
)
(5)
Cash
Sep
-13
(BO
P)
$114
Mar
anhã
oSe
cure
d D
ebt
300
Petr
onas
Far
m-O
ut0
Petr
onas
Rei
mb.
0
New
Equ
ity(1
)17
5O
pera
ting
CF
(3
1)Ca
pex
(252
)Ca
sh J
an-1
4 (E
OP)
$486
Pro
ject
Oly
mp
ic
Bla
ckst
one
13
Atl
anta
(BS-
4) –
10-Y
ear
Fore
cast
I.B
usi
nes
s P
lan
Su
mm
ary
(US$
Mill
ions
)
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Key
Ope
rati
ng D
rive
rsA
vera
ge P
rodu
ctio
n (k
bblp
d)–
––
18.6
34.3
27.8
23.2
19.3
16.5
14.5
Tota
l Pro
duct
ion
(kbb
l)–
––
6,83
0.1
12,5
10.7
10,1
53.9
8,49
7.6
7,03
2.4
6,02
9.6
5,28
3.4
Dai
ly S
ales
(kbb
lpd)
––
–18
.434
.228
.022
.719
.316
.614
.9To
tal S
ales
(kbb
l)–
––
6,72
0.0
12,4
80.0
10,2
40.0
8,32
0.0
7,04
0.0
6,08
0.0
5,44
0.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0%
Dis
coun
t to
Bre
nt F
utur
e Pr
ice
Benc
hmar
k(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)(1
4.3%
)Q
ualit
y-A
djus
ted
Oil
Pric
e ($
/bbl
)90
.090
.090
.090
.090
.090
.090
.090
.090
.090
.0Fr
eigh
t an
d In
sura
nce
Cost
s ($
/bbl
)2.
02.
02.
02.
02.
02.
02.
02.
02.
02.
0N
et R
ealiz
able
Oil
Pric
e ($
/bbl
)88
.088
.088
.088
.088
.088
.088
.088
.088
.088
.0
Key
Fina
ncia
lsRe
venu
e–
––
$591
.4$1
,098
.2$9
01.1
$732
.2$6
19.5
$535
.0$4
78.7
Ope
x–
––
(108
.8)
(147
.7)
(149
.1)
(147
.1)
(152
.1)
(155
.2)
(160
.2)
Roya
ltie
s an
d Sp
ecia
l Par
tici
pati
on–
––
(55.
8)(1
21.2
)(1
02.8
)(9
1.3)
(75.
6)(6
2.0)
(53.
0)A
dmin
istr
ativ
e G
&A
––
–(0
.8)
(0.8
)(0
.6)
(0.4
)(0
.2)
(0.2
)(0
.2)
Expl
orat
ion
Expe
nse
(Ren
tal)
––
––
––
––
––
EBIT
DA
––
–$4
26.0
$828
.5$6
48.6
$493
.3$3
91.6
$317
.7$2
65.4
% M
argi
nn/
m
n/m
n/
m
72.0
%75
.4%
72.0
%67
.4%
63.2
%59
.4%
55.4
%
Cape
x($
1.3)
($22
2.6)
($35
0.0)
($13
3.9)
––
––
––
G&
A A
lloca
ted
to P
P&E
(0.4
)(1
4.0)
(20.
2)(9
.0)
(1.3
)–
(0.6
)–
––
Chan
ge in
Wor
king
Cap
ital
(27.
8)18
.410
.6(8
6.4)
(3.1
)0.
022
.5(3
.6)
(0.9
)4.
2
Taxe
s(1)
––
–(1
02.4
)(1
99.4
)(1
53.0
)(1
12.9
)(8
6.8)
(68.
0)(5
4.4)
Aba
ndon
men
t Co
st–
––
––
––
––
–FC
F($
29.5
)($
218.
2)($
359.
6)$9
4.2
$624
.7$4
95.7
$402
.3$3
01.2
$248
.7$2
15.2
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Show
n be
fore
app
lyin
g ta
x at
trib
utes
at t
he o
pera
ting
com
pany
, whi
ch h
as s
igni
fican
t tax
-loss
car
ry fo
rwar
ds.
Pro
ject
Oly
mp
ic
Bla
ckst
one
14
Expl
orat
ion
Proj
ect
–10
-Yea
r Fo
reca
stI.
Bu
sin
ess
Pla
n S
um
mar
y
(US$
Mill
ions
)
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Key
Ope
rati
ng D
rive
rsA
vera
ge P
rodu
ctio
n (k
bblp
d)–
––
25.3
56.4
57.0
57.0
55.6
42.6
30.7
Tota
l Pro
duct
ion
(kbb
l)–
––
9,26
9.2
20,5
88.0
20,8
05.0
20,8
62.0
20,2
97.1
15,5
67.1
11,1
88.2
Dai
ly S
ales
(kbb
lpd)
––
–25
.155
.957
.056
.855
.942
.730
.7To
tal S
ales
(kbb
l)–
––
9,20
0.0
20,4
00.0
20,8
00.0
20,8
00.0
20,4
00.0
15,6
00.0
11,2
00.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0%
Dis
coun
t to
Bre
nt F
utur
e Pr
ice
Benc
hmar
k–
––
––
––
––
–Q
ualit
y-A
djus
ted
Oil
Pric
e ($
/bbl
)10
5.0
105.
010
5.0
105.
010
5.0
105.
010
5.0
105.
010
5.0
105.
0Fr
eigh
t an
d In
sura
nce
Cost
s ($
/bbl
)2.
52.
52.
52.
52.
52.
52.
52.
52.
52.
5N
et R
ealiz
able
Oil
Pric
e ($
/bbl
)10
2.5
102.
510
2.5
102.
510
2.5
102.
510
2.5
102.
510
2.5
102.
5
Key
Fina
ncia
lsRe
venu
e–
––
$943
.0$2
,091
.0$2
,132
.0$2
,132
.0$2
,091
.0$1
,599
.0$1
,148
.0O
pex
––
–(1
20.0
)(1
91.8
)(1
89.0
)(1
83.8
)(1
80.5
)(1
76.6
)(2
12.7
)Ro
yalt
ies
and
Spec
ial P
arti
cipa
tion
––
–(8
6.7)
(264
.0)
(316
.4)
(377
.4)
(376
.3)
(242
.6)
(145
.0)
Adm
inis
trat
ive
G&
A–
––
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)(0
.1)
(0.1
)Ex
plor
atio
n Ex
pens
e (R
enta
l)–
––
––
––
––
–EB
ITD
A–
––
$736
.2$1
,635
.1$1
,626
.4$1
,570
.6$1
,534
.0$1
,179
.7$7
90.2
% M
argi
nn/
m
n/m
n/
m
78.1
%78
.2%
76.3
%73
.7%
73.4
%73
.8%
68.8
%
Cape
x($
79.9
)($
86.5
)($
484.
9)($
471.
8)($
341.
7)($
308.
2)($
265.
3)($
277.
2)($
221.
0)–
G&
A A
lloca
ted
to P
P&E
(0.6
)(0
.5)
(2.0
)(1
.7)
(1.3
)(1
.4)
(1.2
)(1
.3)
(1.1
)–
Chan
ge in
Wor
king
Cap
ital
6.7
0.6
33.2
(139
.2)
11.0
9.3
9.8
(1.1
)11
.07.
7
Taxe
s(1)
––
–(1
99.0
)(4
29.4
)(4
09.3
)(3
75.3
)(3
49.5
)(2
55.1
)(1
57.7
)A
band
onm
ent
Cost
––
––
––
––
––
FCF
($73
.8)
($86
.5)
($45
3.6)
($75
.5)
$873
.8$9
16.8
$938
.6$9
05.0
$713
.4$6
40.2
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Show
n be
fore
app
lyin
g ta
x at
trib
utes
at t
he o
pera
ting
com
pany
, whi
ch h
as s
igni
fican
t tax
-loss
car
ry fo
rwar
ds.
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
es
Pro
ject
Oly
mp
ic
Bla
ckst
one
16
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
esFi
nanc
ing
Stat
us
OG
X an
d Bl
acks
tone
are
act
ivel
y di
scus
sing
a n
ear-
term
sec
ured
deb
t fin
anci
ng in
con
nect
ion
wit
h a
rest
ruct
urin
g.
fO
ctob
er’s
fore
cast
incl
udes
$10
3 m
illio
n re
quir
ed to
sta
rt p
rodu
ctio
n at
Tub
arão
Mar
telo
and
$28
m
illio
n in
pro
port
iona
te c
omm
itm
ents
for
BS-4
•M
any
vend
ors
are
curr
entl
y pa
st d
ue•
Past
due
ven
dors
hav
e an
abi
lity
to fi
le p
aper
s w
ith
the
Braz
ilian
cou
rt t
hat
coul
d di
srup
t th
e pr
oces
s by
forc
ing
a liq
uida
tion
hea
ring
•A
ccou
nts
paya
ble
bala
nce
was
R$7
43 m
illio
n at
the
end
of A
ugus
t 20
13
App
roxi
mat
ely
R$73
mill
ion
is 3
0 to
60
days
pas
t du
e an
d R$
10 m
illio
n is
mor
e th
an 6
0 da
ys
past
due
Pro
ject
Oly
mp
ic
Bla
ckst
one
17
OG
X Pu
t
fRe
quir
es E
BX a
nd E
ike
Bati
sta
to p
urch
ase
appr
oxim
atel
y 32
2 m
illio
n sh
ares
at
R$6.
3 pe
r sh
are
•Pu
t ca
n be
exe
rcis
ed in
mul
tipl
e tr
anch
es•
Follo
win
g th
e ex
erci
se, E
BX a
nd E
ike
Bati
sta
have
a 6
0 da
y ch
alle
nge
peri
od
Part
ies
ente
r ar
bitr
atio
n if
ther
e is
no
agre
emen
t du
ring
the
chal
leng
e pe
riod
fO
GX
exer
cise
d th
e fu
ll $1
.0 b
illio
n pu
t on
Sep
tem
ber
5, 2
013
•O
GX
requ
este
d $1
00 m
illio
n in
imm
edia
te fu
ndin
g
fO
n Se
ptem
ber
9, 2
013,
the
con
trol
ling
shar
ehol
der
filed
a d
ispu
te n
otic
e pe
r th
e te
rms
of t
he p
ut
agre
emen
t •
The
disp
ute
will
ent
er a
n ar
bitr
atio
n pr
ocee
ding
if a
fter
60
days
an
agre
emen
t is
not
rea
ched
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
es
In O
ctob
er 2
012,
OG
X’s
cont
rolli
ng s
hare
hold
er g
rant
ed a
$1.
0 bi
llion
equ
ity
put
righ
t to
OG
X.
Pro
ject
Oly
mp
ic
Bla
ckst
one
18
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
esFa
rm-O
ut o
f Tub
arão
Mar
telo
fTh
e ag
reem
ent
prov
ides
for
a $2
50 m
illio
n pa
ymen
t up
on a
ppro
val b
y A
NP
•$5
00 m
illio
n pa
ymen
t up
on in
itia
l pro
duct
ion
of o
il•
$100
mill
ion
upon
ach
ievi
ng p
rodu
ctio
n m
ilest
ones
(40,
50,
60
kbbl
/day
)դ
Ach
ievi
ng t
hese
pro
duct
ion
mile
ston
es w
as b
ased
on
high
er r
eser
ve e
stim
ates
(app
roxi
mat
ely
200
Mbo
e)
and
oper
atio
n of
WH
P-2
fCe
rtai
n co
ntra
ctua
l pro
visi
ons
incl
ude
•Re
pres
enta
tion
tha
t O
GX
has
adeq
uate
fina
ncia
l hea
lth
to o
pera
te T
ubar
ão M
arte
lo•
Petr
onas
has
a te
rmin
atio
n ri
ght
follo
win
g a
judi
cial
rec
over
y or
ext
ra-ju
dici
al r
ecov
ery
filin
g by
OG
X or
OSX
•U
pon
clos
ing,
Pet
rona
s ha
s lie
ns a
nd a
neg
ativ
e pl
edge
cla
use
on T
ubar
ão M
arte
lo a
nd B
S-4
fPe
tron
as h
as n
ot fu
nded
the
req
uisi
te c
apita
l of i
ts B
razi
lian
subs
idia
ry a
s re
quir
ed fo
r A
NP
appr
oval
fPe
tron
as h
as m
ade
publ
ic s
tate
men
ts t
hat
a de
bt r
estr
uctu
ring
mus
t oc
cur
befo
re t
he d
eal c
an b
e fin
aliz
ed a
nd t
hat
it w
ill r
equi
re fu
ll cl
arit
y on
the
deb
t re
stru
ctur
ing
befo
re m
akin
g an
y de
cisi
ons
fO
GX
and
Petr
onas
con
tinu
e di
scus
sion
s re
gard
ing
a m
odifi
ed fa
rm-o
ut a
rran
gem
ent,
incl
udin
g:•
Purc
hase
pri
ce a
djus
tmen
t (d
ue t
o re
duct
ion
of v
olum
e af
ter
inte
rpre
tati
on o
f dat
a co
min
g fr
om 6
pro
duct
ion
wel
ls d
rille
d)•
New
con
diti
ons
prec
eden
t (f
iling
of j
udic
ial r
ecov
ery,
sup
port
agr
eem
ent,
clo
sing
of j
udic
ial r
ecov
ery,
etc
.)•
Stan
dsti
ll
On
May
6, 2
013,
OG
X en
tere
d in
to a
farm
-out
for
40%
of T
ubar
ão M
arte
lo w
ith
Petr
onas
for
up to
$8
50 m
illio
n.
Pro
ject
Oly
mp
ic
Bla
ckst
one
19
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
esO
SX S
umm
ary
fO
SX-1
•D
eplo
yed
for
prod
ucti
on a
t Tu
barã
o A
zul.
Firs
t oi
l in
2012
.•
Leas
e te
rm e
xpir
es in
203
0•
Ann
ual l
ease
of $
96 m
illio
n
NPV
@ 1
0% o
f $0.
8 bi
llion
•O
SX h
as a
term
inat
ion
righ
t fo
llow
ing
judi
cial
rec
over
y by
OG
X (O
SX m
ay a
rgue
tha
t O
GX
has
no te
rmin
atio
n ri
ght)
•A
term
inat
ion
even
t en
titl
es O
SX-1
Lea
sing
B.V
. to
seek
pay
men
t of
the
“Te
rmin
atio
n Su
m”
per
sect
ion
16.2
of
the
char
ter
agre
emen
t, o
r co
mm
on la
w d
amag
es
“Ter
min
atio
n Su
m”
incl
udes
am
ount
s ou
tsta
ndin
g on
the
und
erly
ing
OSX
-1 fi
nanc
ing
•A
ppro
xim
ate
outs
tand
ing
finan
cing
on
OSX
-1 o
f $30
0 m
illio
n
fO
SX-2
•In
tend
ed fo
r ex
plor
atio
n an
d de
velo
pmen
t at
Tub
arão
Gat
o, A
reia
, and
Tig
re•
Leas
e te
rm e
xpir
es in
203
3•
Ann
ual l
ease
of $
153
mill
ion
N
PV @
10%
of $
1.3
billi
on•
OSX
has
a te
rmin
atio
n ri
ght
follo
win
g ju
dici
al r
ecov
ery
by O
GX
(OSX
may
arg
ue t
hat
OG
X ha
s no
term
inat
ion
righ
t)•
A te
rmin
atio
n ev
ent
enti
tles
OSX
-2 L
easi
ng B
.V. t
o se
ek p
aym
ent
of t
he “
Term
inat
ion
Sum
” pe
r se
ctio
n 16
.2 o
f th
e ch
arte
r ag
reem
ent,
or
com
mon
law
dam
ages
“T
erm
inat
ion
Sum
” in
clud
es a
mou
nts
outs
tand
ing
on t
he u
nder
lyin
g O
SX-2
fina
ncin
g•
App
roxi
mat
e ou
tsta
ndin
g fin
anci
ng o
n O
SX-2
of $
600
mill
ion
OSX
will
like
ly a
sser
t cl
aim
s fo
r da
mag
es u
pon
term
inat
ion
or b
reac
h of
the
OSX
agr
eem
ents
. OSX
le
nder
s m
ay h
ave
a ro
le in
the
cla
im d
efin
itio
n.
Pro
ject
Oly
mp
ic
Bla
ckst
one
20
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
esO
SX S
umm
ary
(con
t’d)
fW
HP-
2•
Inte
nded
use
was
Tub
arão
Mar
telo
•Re
duce
d re
serv
e es
tim
ate
(fro
m 2
00 M
boe
to 1
26 M
boe)
elim
inat
es n
eed
for
WH
P-2
fO
GX
has
init
iate
d di
scus
sion
s w
ith
OSX
rega
rdin
g po
tent
ial r
estr
uctu
ring
cla
ims
in c
onne
ctio
n w
ith
term
inat
ion
of O
SX-1
, OSX
-2 a
nd W
HP-
2•
OSX
has
indi
cate
d th
at t
hey
belie
ve t
he a
ggre
gate
cla
im fo
r te
rmin
atio
n of
OSX
-1, O
SX-2
and
W
HP-
2 w
ould
be
$2.6
bill
ion,
whi
ch a
ppea
rs to
incl
ude
a cl
aim
of $
500
mill
ion
to $
600
mill
ion
for
term
inat
ion
of W
HP-
2
OG
X no
long
er r
equi
res
the
use
of W
HP-
2 at
Tub
arão
Mar
telo
.
Pro
ject
Oly
mp
ic
Bla
ckst
one
21
II.
Rel
evan
t R
estr
uct
uri
ng
Issu
esJu
risd
icti
on
Braz
il pr
ovid
es t
he o
ptio
n of
res
truc
turi
ng t
hrou
gh a
judi
cial
reco
very
pro
cess
or
an e
xtra
-judi
cial
re
cove
ry p
roce
ss.
fJu
dici
al r
ecov
ery
proc
ess
•St
ay p
erio
d of
up
to 1
80 d
ays
•D
IP fi
nanc
ing
prot
ecti
ons
can
be g
iven
to
lend
ers
•Re
quir
es >
50%
app
rova
l of c
redi
tors
pr
esen
t at
the
cre
dito
rs m
eeti
ng
•Fi
ling
and
impl
emen
tati
on re
quir
es
shar
ehol
der
cons
ent
•A
llow
s O
GX
to r
estr
uctu
re m
ore
than
one
gr
oup
of c
redi
tor
clai
ms,
incl
udin
g th
e O
SX
cont
ract
s, b
ut p
rovi
des
no u
nila
tera
l rig
ht
to r
ejec
t co
ntra
cts
•Ce
rtai
nty
of p
roce
ss
fEx
tra-
judi
cial
rec
over
y pr
oces
s
•Pl
an is
sub
mitt
ed to
one
cla
ss o
r a
grou
p of
cr
edito
rs
•D
IP fi
nanc
ing
prot
ecti
ons
are
not
avai
labl
e
•Re
quir
es 6
0% a
ppro
val o
f aff
ecte
d cr
edito
rs
•D
oes
not
allo
w fo
r tr
eatm
ent
of t
he O
SX
cont
ract
s
•Li
mite
d ex
peri
ence
in B
razi
l
Ap
pen
dix
Pro
ject
Oly
mp
ic
Bla
ckst
one
23
Mar
anhã
o –
10-Y
ear
Fore
cast
(1)
Ap
pen
dix
(US$
Mill
ions
)
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Not
incl
uded
in c
onso
lidat
ed fi
nanc
ials
bec
ause
of p
roje
cted
sal
e in
Nov
embe
r 20
13 fo
r $1
80 m
illio
n.
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Key
Ope
rati
ng D
rive
rsA
vera
ge P
rodu
ctio
n (M
M m
³ /
day)
4.5
3.9
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
Tota
l Pro
duct
ion
(MM
m³)
1,62
8.3
1,42
1.6
1,28
2.7
1,28
4.8
1,28
6.8
1,28
8.7
1,29
0.1
1,29
1.5
1,29
2.6
1,29
4.5
Key
Fina
ncia
lsRe
venu
e$1
20.1
$106
.9$9
9.0
$99.
1$9
9.1
$99.
1$9
9.1
$99.
2$9
9.2
$99.
2O
pex
(3.5
)(7
.5)
(6.1
)(3
.5)
(7.5
)(6
.1)
(3.5
)(7
.5)
(6.1
)(3
.5)
Roya
ltie
s an
d Sp
ecia
l Par
tici
pati
on(1
2.3)
(10.
4)(9
.6)
(9.5
)(1
1.1)
(11.
2)(1
1.4)
(11.
2)(1
1.3)
(11.
4)A
dmin
istr
ativ
e G
&A
(1.8
)(4
.1)
(3.6
)(6
.2)
(7.6
)(7
.4)
(7.6
)(7
.6)
(7.7
)(7
.6)
Expl
orat
ion
Expe
nse
(1.7
)(4
.6)
(4.5
)(8
.1)
(8.2
)(8
.4)
(8.3
)(8
.3)
(8.2
)(8
.2)
EBIT
DA
$100
.8$8
0.2
$75.
3$7
1.7
$64.
6$6
6.1
$68.
3$6
4.6
$66.
0$6
8.5
% M
argi
n84
.0%
75.0
%76
.0%
72.4
%65
.2%
66.7
%68
.8%
65.1
%66
.5%
69.0
%
Cape
x($
64.5
)–
–($
9.9)
($29
.6)
($29
.6)
($29
.6)
($29
.6)
($29
.6)
($19
.7)
G&
A A
lloca
ted
to P
P&E
(0.4
)(0
.6)
––
(1.8
)(1
.2)
(1.8
)(1
.6)
(1.9
)(1
.9)
Chan
ge in
Wor
king
Cap
ital
5.9
(1.8
)0.
04.
90.
74.
10.
3(0
.0)
0.2
(9.5
)Ta
xes
(0.7
)1.
61.
42.
2(2
.0)
(2.2
)(3
.5)
(3.3
)(4
.9)
(9.2
)A
band
onm
ent
Cost
––
––
––
––
––
FCF
$41.
2$7
9.4
$76.
7$6
9.0
$31.
9$3
7.1
$33.
8$3
0.0
$29.
8$2
8.2
Pro
ject
Oly
mp
ic
Bla
ckst
one
OSX
Set
tlem
ent
In Ju
ne 2
013,
OG
X ca
ncel
led
seve
ral e
quip
men
t con
trac
ts w
ith
OSX
for
$449
mill
ion
afte
r it
was
di
scov
ered
tha
t th
ree
of O
GX’
s fie
lds
wer
e no
long
er e
cono
mic
ally
via
ble.
fA
gree
men
t se
ttle
d co
ntra
cts
for
OSX
-4, O
SX-5
, WH
P-1,
WH
P-3
and
WH
P-4
•O
GX
purs
ued
sett
lem
ent
in o
rder
not
to
dela
y O
SX-3
de
liver
y
•Re
plac
ing
OSX
-3 w
ith
diff
eren
t FP
SO in
the
mar
ket
was
no
t co
nsid
ered
a v
iabl
e op
tion
giv
en t
he r
equi
red
tim
e to
bu
ild a
nd d
eliv
er a
uni
t (d
oing
so
wou
ld r
educ
e N
PV t
o O
GX
and
requ
ire
an a
ddit
iona
l $45
0 m
illio
n in
cas
h by
20
16)
fTh
e se
ttle
men
t re
pres
ents
a 5
0% d
isco
unt
to t
he $
894
mill
ion
pote
ntia
l OSX
cla
im
•$5
39 m
illio
n cl
aim
rel
ated
to
cont
ract
ter
min
atio
n fo
r W
HP-
1, O
SX-4
and
OSX
-5
•$3
55 m
illio
n cl
aim
rel
ated
to c
ontr
act
mod
ifica
tion
for
OSX
-3 a
t Tu
barã
o M
arte
lo
•70
% o
f the
set
tlem
ent
wen
t to
the
con
stru
ctio
n of
OSX
-3
fIn
clud
ed in
the
set
tlem
ent
is t
he a
bilit
y of
OG
X to
wal
k aw
ay
from
its
curr
ent
WH
P-2
cont
ract
in t
he e
vent
of a
n O
SX
bank
rupt
cy (N
PV o
f con
trac
t equ
al t
o ~$
1 bi
llion
)
•O
GX
can
also
ter
min
ate
cont
ract
if O
SX d
oes
not
deliv
er
the
unit
by
Apr
il 20
15
OG
X-O
SX S
ettl
emen
t A
naly
sis
All d
ata
in U
S$ M
illio
ns, u
nles
s oth
erw
ise st
ated
1Co
ntra
ct T
erm
inat
ion
(WH
P-1,
OSX
-4 a
nd O
SX-5
)In
curr
ed C
apex
up
to M
arch
31,
201
3D
irec
t Co
sts
$334
Indi
rect
Cos
ts31
Inte
rest
s12
Oth
er6
Tota
l Inc
urre
d Ca
pex
$384
Com
mit
ted
Cape
x af
ter
Mar
ch 3
1, 2
013
97O
SX 1
5% IR
R58
Clai
m 1
$539
2Ch
ange
in T
ubar
ão M
arte
lo's
NPV
NPV
OSX
pre
-dea
l$1
,514
Cont
ract
Ter
ms
FPSO
= 2
0y; W
HP
= 25
yA
vera
ge D
ay R
ates
FPSO
= $
426K
/ d
ay; W
HP
= $4
07K
/ da
y
NPV
OSX
pos
t-de
al$1
,869
Cont
ract
Ter
ms
FPSO
= 1
3y; W
HP
= 12
yA
vera
ge D
ay R
ates
FPSO
= $
383K
/ d
ay; W
HP
= $3
95K
/ da
y
Clai
m 2
$355
Tota
l Cla
im$8
94Pa
ymen
t fr
om O
GX
to O
SX$4
49
Dis
coun
t O
ver
Tota
l Cla
im$4
45%
Dis
coun
t50
%
Pro
ject
Oly
mp
ic
Bla
ckst
one
1
Sum
mar
y Te
rm S
heet
Key
Asp
ects
of R
estr
uctu
ring
Pro
posa
l
Inte
rim
Deb
t Fi
nanc
ing
•$3
00 m
illio
n of
sen
ior
secu
red
debt
•Ti
min
g:O
n or
abo
ut th
e co
mm
ence
men
t of
a ju
dici
al r
ecov
ery
filin
g
Equi
ty R
ight
s O
ffer
ing
•$2
00 m
illio
n•
Tim
ing:
Con
curr
ent
wit
h co
nsum
mat
ion
of r
estr
uctu
ring
in D
ecem
ber
2013
•M
ay b
e ba
ck-s
topp
ed/s
ubsc
ribe
d by
the
Not
e ho
lder
s or
thi
rd-p
arty
inve
stor
s
Conv
ersi
on o
f Deb
t to
Equ
ity
•N
otes
of $
3.6
billi
on to
be
conv
erte
d to
equ
ity
•Ti
min
g: C
oncu
rren
t w
ith
rest
ruct
urin
g in
Dec
embe
r 20
13
Uns
ecur
edCr
edit
ors
•Re
quir
es fu
rthe
r di
ligen
ce•
OSX
man
agem
ent h
as in
dica
ted
that
it b
elie
ves
its
clai
m is
$2.
6 bi
llion
Pro
Form
a Eq
uity
Ow
ners
hip
•90
% u
nsec
ured
cre
dito
rs (1
) (2)
•10
% e
xist
ing
shar
ehol
ders
Obl
igat
ions
of C
ontr
ollin
g Sh
areh
olde
r•
Mai
ntai
n >5
0% o
wne
rshi
p in
OG
X pr
ior
to d
iluti
on fr
om r
estr
uctu
ring
•A
gree
to
vote
in fa
vor
of fi
ling
for
judi
cial
rec
over
y•
Agr
ee t
o au
thor
ize
issu
ance
of n
ew s
hare
s fo
r re
stru
ctur
ing
Cons
ider
atio
ns fo
r Co
ntro
lling
Sh
areh
olde
r•
Sett
lem
ent
of P
ut o
ptio
n ag
reem
entw
ith
OG
X•
Rele
ases
from
par
tici
pant
s in
res
truc
turi
ng fr
om c
laim
s re
late
d to
res
truc
turi
ng
Rest
ruct
urin
g V
enue
/ P
roce
ss•
Braz
ilian
judi
cial
rec
over
y
Cond
itio
nPr
eced
ent
•A
NP
has
not i
ndic
ated
that
it w
ill t
erm
inat
e O
GX
conc
essi
ons
as a
res
ult
of t
he r
estr
uctu
ring
or
othe
rwis
e ch
alle
nge
the
rest
ruct
urin
g__
____
____
____
____
____
____
____
____
____
____
____
__
(1)
Equi
ty o
wne
rshi
p pr
ior
to d
iluti
on d
ue to
equ
ity
righ
ts o
ffer
ing.
(2)
Prio
r to
man
agem
ent i
ncen
tive
pla
n.
$3.6
bill
ion
US
Not
e ho
lder
s$5
46 m
illio
nSu
pplie
rs (a
ppro
xim
ate)
$4.2
bill
ion
Sub-
tota
l$0
.9 b
illio
n - $
2.6
billi
onO
SX c
laim
for
OSX
-1, O
SX-2
and
WH
P-2
$5.1
bill
ion
- $6.
8 bi
llion
Tota
l (pa
ri p
assu
)
Res
tru
ctu
rin
g O
verv
iew
Pro
ject
Oly
mp
ic
Bla
ckst
one
2
Reco
very
Ana
lysi
s (c
ont’
d)C
ase
1: N
o F
arm
-Ou
t to
Pet
ron
as a
nd
Sal
e of
Mar
anh
ão
Equi
ty O
wne
rshi
p A
t Lo
w O
SX C
laim
($0.
9 bi
llion
)Eq
uity
Ow
ners
hip
At
Hig
h O
SX C
laim
($2.
6 bi
llion
)
(US$
Mill
ions
)A
mou
nt%
of T
otal
(US$
Mill
ions
)A
mou
nt%
of T
otal
Shar
ehol
ders
:O
wn.
%Sh
areh
olde
rs:
Ow
n. %
US
Not
e ho
lder
s$1
,373
.357
%U
S N
ote
hold
ers
$1,0
28.6
42%
OSX
Cla
im34
0.9
14%
OSX
Cla
im73
7.5
30%
Righ
ts O
ffer
ing
Inve
stor
s26
6.7
11%
Righ
ts O
ffer
ing
Inve
stor
s26
6.7
11%
Supp
liers
Cla
im20
6.6
9%Su
pplie
rs C
laim
154.
76%
Exis
ting
Sha
reho
lder
s24
3.1
10%
Exis
ting
Sha
reho
lder
s24
3.1
10%
Tota
l$2
,430
.510
0%To
tal
$2,4
30.5
100%
US
Not
e ho
lder
Val
ue R
ecov
ery
at In
crea
sed
OSX
Cla
ims
Am
ount
(US$
Mill
ions
)Pa
rtic
ipat
ion
inR
ight
s O
ffer
ing
OSX
Cla
im0.
0%10
0.0%
$900
37.9
%39
.7%
$2,6
0028
.4%
30.2
%
Pro
ject
Oly
mp
ic
Bla
ckst
one
3
Pro
Form
a N
ear-
Term
Liq
uidi
ty P
roje
ctio
ns
Blac
ksto
ne b
elie
ves
that
man
agem
ent’
s bu
sine
ss p
lan
prov
ides
suf
ficie
nt li
quid
ity
for
OG
X.
Cas
e 1:
No
Far
m-O
ut
to P
etro
nas
an
d S
ale
of M
aran
hão
(US$
Mill
ions
)Se
p-13
Oct
-13
Nov
-13
Dec
-13
Jan-
14Fe
b-14
Cum
ulat
ive
Tuba
rão
Mar
telo
EBI
TDA
($0)
($0)
($0)
($0)
$32
($0)
$32
Tota
l G&
A (i
ncl.
capi
taliz
ed)
(14)
(14)
(13)
(13)
(16)
(21)
(91)
Tuba
rão
Mar
telo
Cap
ex(3
5)(1
03)
(29)
(27)
(12)
(12)
(218
)BS
-4 C
apit
al C
all
(28)
(28)
(28)
(28)
(0)
(0)
(112
)Tu
barã
o A
zul A
band
onm
ent
Cost
––
––
(82)
–(8
2)O
SX-1
Pay
men
ts(1
1)–
––
––
(11)
Sign
ing
Bonu
s Re
fund
–5
––
––
5Ch
ange
in W
orki
ng C
apit
al (e
xcl.
Mar
anhã
o)(3
5)45
(22)
(9)
45(2
9)(5
)O
ther
Cas
h Fl
ows
0(1
)(1
1)1
(6)
1(1
6)M
aran
hão
Free
Cas
h Fl
ow4
50
(14)
0(1
)(5
)N
et C
hang
e in
Cas
h be
fore
M&
A/F
inan
cing
($11
9)($
90)
($10
3)($
90)
($39
)($
63)
($50
3)
Petr
onas
Pay
men
t–
– –
––
––
Petr
onas
Cap
ex R
eim
burs
emen
t–
––
––
––
Mar
anhã
o Sa
le–
–18
0–
––
180
Seni
or D
ebt
(Inte
rim
Cap
ital
Rai
se)
–30
0–
––
–30
0Eq
uity
Rig
hts
Off
erin
g Pr
ocee
ds–
––
200
––
200
Rest
ruct
urin
g Fe
es a
nd E
xpen
ses
––
–(2
5)–
–(2
5)M
&A
/Fin
anci
ng C
ash
Flow
s–
$300
$180
$175
––
$655
Net
Cha
nge
in C
ash
($11
9)$2
10$7
7$8
5($
39)
($63
)$1
51
Begi
nnin
g Ca
sh B
alan
ce$2
33$1
14$3
23$4
01$4
86$4
47$2
33En
ding
Cas
h Ba
lanc
e$1
14$3
23$4
01$4
86$4
47$3
84$3
84
Pro
ject
Oly
mp
ic
Bla
ckst
one
4
Long
-Ter
m C
ash
Flow
Sum
mar
y
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Corp
orat
e ex
pens
es in
clud
e O
pex,
Adm
inis
trat
ive
G&
A, a
nd E
xplo
rati
on E
xpen
se. S
G&
A is
hel
d fla
t unt
il 20
16 a
nd th
en is
red
uced
wit
h th
e im
plem
enta
tion
of
Tuba
rão
Mar
telo
.(2
)Ca
sh is
sho
wn
befo
re p
oten
tial
farm
-out
s, s
ales
, or
finan
cing
s.
Cas
e 1:
No
Far
m-O
ut
to P
etro
nas
an
d S
ale
of M
aran
hão
(US$
Mill
ions
)20
14E
2015
E20
16E
2017
E20
18E
2019
E20
20E
Key
Ope
rati
ng D
rive
rsTo
tal P
rodu
ctio
n (k
bbl)
6,55
9.0
5,14
6.4
9,09
6.6
16,3
46.9
20,7
39.5
17
,709
.1
15,5
77.4
To
tal S
ales
(kbb
l)6,
400.
0
5,
600.
0
8,
800.
0
16
,320
.0
20
,480
.0
18,2
40.0
15
,520
.0
Bren
t Fu
ture
Pri
ce B
ench
mar
k ($
/bbl
)$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
$105
.0$1
05.0
Ave
rage
Rea
lized
Oil
Pric
e ($
/bbl
)98
.098
.098
.094
.291
.692
.092
.0
Key
Fina
ncia
lsRe
venu
e$6
27.2
$548
.8$8
62.4
$1,5
32.2
$1,8
82.2
$1,6
85.1
$1,4
37.8
Proj
ect-
Leve
l EBI
TDA
325.
3
230.
3
472.
2
1,03
0.9
1,26
0.4
1,06
1.0
888.
1
Corp
orat
e Ex
pens
es(1
)(1
92.1
)
(178
.0)
(1
53.3
)
(73.
3)
(5
9.7)
(45.
8)
(3
1.3)
Cons
olid
ated
EB
ITD
A$1
33.2
$52.
3$3
18.9
$957
.6$1
,200
.7$1
,015
.2$8
56.8
Dev
elop
men
t Ca
pex
(93.
1)(6
89.0
)(5
86.1
)(1
33.9
)–
––
Expl
orat
ion
Cape
x(0
.2)
(2.5
)(0
.6)
(124
.9)
(124
.8)
–(9
5.0)
G&
A A
lloca
ted
to P
P&E(1
)(1
2.3)
(32.
1)(3
0.9)
(11.
2)(4
.8)
–(2
.1)
Chan
ge in
Wor
king
Cap
ital
(2.1
)22
8.3
(141
.2)
2.7
(89.
1)(1
.3)
11.3
Cash
Tax
es–
–(1
4.4)
(129
.2)
(167
.6)
(133
.7)
(110
.9)
Aba
ndon
men
t Co
st(8
2.0)
––
––
––
Ope
rati
onal
Fre
e Ca
sh F
low
($56
.5)
($44
2.9)
($45
4.4)
$561
.1$8
14.5
$880
.2$6
60.1
Fina
ncin
g/M
&A
Cas
h Fl
ows:
Petr
onas
Pay
men
ts–
––
––
––
Uni
tiza
tion
Pay
men
t to
BP
(7.0
)–
––
––
–Fi
nanc
ial I
ncom
e12
.910
.87.
33.
06.
017
.629
.4N
et F
inan
cial
Dis
burs
emen
ts(2
.5)
(2.5
)(2
.8)
(3.0
)(2
.6)
(2.8
)(2
.5)
Cash
Inte
rest
(24.
0)(2
4.0)
(24.
0)(2
4.0)
(24.
0)(2
4.0)
(24.
0)To
tal F
inan
cing
/M&
A C
ash
Flow
s($
20.6
)($
15.7
)($
19.4
)($
24.0
)($
20.5
)($
9.2)
$2.9
Net
Cha
nge
in C
ash
($77
.2)
($45
8.6)
($47
3.8)
$537
.1$7
93.9
$871
.0$6
63.0
Begi
nnin
g Ca
sh B
alan
ce(2
)$4
85.9
$408
.7($
49.9
)($
523.
7)$1
3.4
$807
.3$1
,678
.3
Endi
ng C
ash
Bala
nce(2
)$4
08.7
($49
.9)
($52
3.7)
$13.
4$8
07.3
$1,6
78.3
$2,3
41.4
Cas
e 2:
Far
m-O
ut
to P
etro
nas
an
d S
ale
of M
aran
hão
Pro
ject
Oly
mp
ic
Bla
ckst
one
6
Rest
ruct
urin
g So
urce
s an
d U
ses
and
Pro
Form
a Ca
pita
lizat
ion
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Pro
form
a fo
r $3
00 m
illio
n de
bt o
ffer
ing
and
$180
mill
ion
Mar
anhã
o sa
le.
(2)
Illus
trat
ive.
Cas
e 2:
Far
m-O
ut
to P
etro
nas
an
d S
ale
of M
aran
hão
(US$
Mill
ions
)
Sour
ces
& U
ses
- At
12/3
1/13
Sour
ces
Use
sEq
uity
Rig
hts
Off
erin
g$2
00.0
Cash
to
Bala
nce
Shee
t$8
84.3
Exis
ting
Cas
h on
Bal
ance
She
et(1
)70
9.3
Esti
mat
ed F
ees
and
Expe
nses
25.0
Tota
l Sou
rces
$909
.3To
tal U
ses
$909
.3
Pro
Form
a Ca
pita
lizat
ion
- As
of 1
2/31
/13
Inte
rest
Pre-
Res
truc
turi
ngRa
teEm
erge
nce
Adj
ustm
ents
Pro
Form
aN
otes
:20
18 S
enio
r U
nsec
ured
Not
es8.
50%
$2,5
63.0
($2,
563.
0)$
–20
22 S
enio
r U
nsec
ured
Not
es8.
38%
1,06
3.0
(1,0
63.0
)–
Tota
l Not
es$3
,626
.0($
3,62
6.0)
$ –
Post
-Em
erge
nce
Deb
t:Se
nior
Deb
t (In
teri
m C
apit
al R
aise
)8.
00%
$300
.0$
–$3
00.0
Tota
l New
Deb
t$3
00.0
$ –
$300
.0
Tota
l Deb
t$3
,926
.0($
3,62
6.0)
$300
.0
Equi
ty V
alue
(2)
$ –
$2,7
30.0
$2,7
30.0
Tota
l Cap
ital
izat
ion
$3,9
26.0
$3,0
30.0
Pro
ject
Oly
mp
ic
Bla
ckst
one
7
Reco
very
Ana
lysi
s
fTh
e fo
llow
ing
illus
trat
ive
reco
veri
es a
nd p
ro fo
rma
owne
rshi
p ar
e ba
sed
on a
n as
sum
ed v
alua
tion
of
OG
X of
app
roxi
mat
ely
$2.7
bill
ion
____
____
____
____
____
____
____
____
____
____
____
____
(1)
Dis
trib
utab
le e
quit
y po
st a
lloca
tion
to R
ight
s O
ffer
ing
Inve
stor
s an
d Ex
isti
ng S
hare
hold
ers.
Cas
e 2:
Far
m-O
ut
to P
etro
nas
an
d S
ale
of M
aran
hão
Righ
ts O
ffer
ing
Ove
rvie
wSu
mm
ary
of U
nsec
ured
Cla
ims
Clai
mA
lloca
ted
(US$
Mill
ions
)(U
S$ M
illio
ns)
Am
ount
% o
f Tot
al
Equi
ty(1
)
Righ
ts O
ffer
ing
$200
.0U
S N
ote
hold
er C
laim
$3,6
26.0
71.5
%$1
,566
.0Ri
ghts
Off
erin
g D
isco
unt
-%25
%O
SX C
laim
900.
017
.7%
388.
7Im
plie
d Eq
uity
Val
ue$2
66.7
Supp
liers
Cla
im54
5.5
10.8
%23
5.6
Tota
l Uns
ecur
ed C
laim
$5,0
71.5
100.
0%$2
,190
.3
US
Not
e ho
lder
Val
ue R
ecov
ery
Part
icip
atio
n in
(US$
Mill
ions
)Ri
ghts
Off
erin
g
0.0%
100.
0%Fa
ce V
alue
of N
otes
$3,6
26.0
$3,6
26.0
Deb
t/Eq
uity
Exc
hang
e:
Shar
ehol
ders
:O
wn.
%
Equi
ty$1
,566
.0$1
,566
.0
US
Not
e ho
lder
s$1
,566
.057
%
Righ
ts O
ffer
ing
Equi
ty V
alue
–26
6.7
OSX
Cla
im38
8.7
14%
Less
: Rig
hts
Off
erin
g In
vest
men
t–
(200
.0)
Righ
ts O
ffer
ing
Inve
stor
s26
6.7
10%
Tota
l$1
,566
.0$1
,632
.7
Supp
liers
Cla
im23
5.6
9%
Exis
ting
Sha
reho
lder
s27
3.0
10%
Reco
very
as
% o
f Fac
e43
.2%
45.0
%
Tota
l$2
,730
.010
0%
Pro
ject
Oly
mp
ic
Bla
ckst
one
8
Pro
Form
a N
ear-
Term
Liq
uidi
ty P
roje
ctio
ns
Blac
ksto
ne b
elie
ves
that
man
agem
ent’
s bu
sine
ss p
lan
prov
ides
suf
ficie
nt li
quid
ity
for
OG
X.
Cas
e 2:
Far
m-O
ut
to P
etro
nas
an
d S
ale
of M
aran
hão
(US$
Mill
ions
)Se
p-13
Oct
-13
Nov
-13
Dec
-13
Jan-
14Fe
b-14
Cum
ulat
ive
Tuba
rão
Mar
telo
EBI
TDA
($0)
($0)
($0)
($0)
$32
($0)
$32
Tota
l G&
A (i
ncl.
capi
taliz
ed)
(14)
(14)
(13)
(13)
(16)
(21)
(91)
Tuba
rão
Mar
telo
Cap
ex(3
5)(1
03)
(29)
(27)
(12)
(12)
(218
)BS
-4 C
apita
l Cal
l(2
8)(2
8)(2
8)(2
8)(0
)(0
)(1
12)
Tuba
rão
Azu
l Aba
ndon
men
t Cos
t–
––
–(8
2)–
(82)
OSX
-1 P
aym
ents
(11)
––
––
–(1
1)Si
gnin
g Bo
nus
Refu
nd–
5–
––
–5
Chan
ge in
Wor
king
Cap
ital (
excl
. Mar
anhã
o)(3
5)45
(22)
(9)
45(2
9)(5
)O
ther
Cas
h Fl
ows
0(1
)(1
1)1
(6)
2(1
5)M
aran
hão
Free
Cas
h Fl
ow4
50
(14)
0(1
)(5
)N
et C
hang
e in
Cas
h be
fore
M&
A/F
inan
cing
($11
9)($
90)
($10
3)($
90)
($38
)($
62)
($50
2)
Petr
onas
Pay
men
t–
––
$250
$500
–$7
50Pe
tron
asCa
pex
Reim
burs
emen
t–
––
148
––
148
Mar
anhã
oSa
le–
–Se
nior
Deb
t (In
teri
m C
apita
l Rai
se)
–30
0–
––
–30
0Eq
uity
Rig
hts
Off
erin
g Pr
ocee
ds–
––
200
––
200
Rest
ruct
urin
g Fe
es a
nd E
xpen
ses
––
–(2
5)–
–(2
5)M
&A
/Fin
anci
ng C
ash
Flow
s–
$300
$180
$573
$500
–$1
,553
Net
Cha
nge
in C
ash
($11
9)$2
10$7
7$4
84$4
62($
62)
$1,0
52
Begi
nnin
g Ca
sh B
alan
ce$2
33$1
14$3
23$4
01$8
84$1
,346
$233
Endi
ng C
ash
Bala
nce
$114
$323
$401
$884
$1,3
46$1
,285
$1,2
85
Project Olympic
1 #85164961v2
Summary Term Sheet
Key Aspects of Restructuring Proposal
New Financing • $300 million (assuming Martelo farmout as described below) • Timing of funding consistent with the Company’s liquidity needs • Form of financing TBD
Conversion of Debt to Equity
• Notes of $3.6 billion to be converted to equity • Residual debt if any to be determined by provider of new capital
• Concurrent with completion of a restructuring
UnsecuredCreditors
$3.6 billion US Note holders
$0.5 billion Suppliers (approximate)
$4.1 billion Sub-total
$[ ] OSX claim1
$[ ] billion Total (pari passu)
Pro Forma Equity Ownership
• 90% unsecured creditors2
• 10% existing shareholders3
Obligations of Controlling Shareholder
• Maintain >50% ownership in OGX prior to dilution from restructuring • Agree to vote in favor of filing for judicial recovery • Agree to authorize issuance of new shares for restructuring• Cause the resignation of the board of directors of OGX in full immediately upon
its emergence from Restructuring
Consideration for Controlling Shareholder
• Settlement of Put option agreement with OGX • Releases from participants in restructuring from claims related to restructuring
RestructuringVenue / Process
• Brazilian judicial recovery
ConditionPrecedent
• ANP has not indicated that it will terminate OGX concessions as a result of the restructuring or otherwise challenge the restructuring
Farmout of Martelo
• Company will propose a farmout to Petronas for 40% of Martelo • Key Terms include
• $300 million payable at filing of judicial recovery • $300 million payable upon approval of the judicial recovery plan by the
General Creditors Assembly • Reimbursement of 40% of expenses post- May 1, 2013 • Elimination of WHP-2 • Elimination of pledge commitment for 40% of Martelo and 20% of BS-4
Releases • The plan of reorganization would contain mutual releases from participants in Restructuring from claims related to Restructuring and prior actions to the extent permitted by applicable law
1 In connection with termination of OSX-1, OSX-2, WHP-2 and the strategic cooperation agreement, among other things. 2 Prior to dilution for management incentive plan and new capital. 3 After dilution for management incentive plan and new capital.
Project Olympic
2 #85164961v2
Governance • Bylaws and governance of the reorganized Company must be satisfactory to the Ad-Hoc Group
Business Plan • Business plan for material oil & gas assets and contractual commitments associated therewith to be subject to the consent of the Ad-Hoc Group
CRO • Appointment of a Chief Restructuring Officer by and for OGX and its subsidiaries, acceptable to the Ad-Hoc Group at its sole discretion after consultation with the Controlling Shareholder
Listing • The shares of (restructured) OGX to remain listed on the Bovespa
Project Olympic Draft – Confidential
1 #85164961v2
Summary Term Sheet
Key Aspects of Restructuring Proposal
New Financing • $300 million (assuming Martelo farmout as described below) • Timing of funding consistent with the Company’s liquidity needs • Form of financing TBD
Conversion of Debt to Equity
• Notes of $3.6 billion to be converted to equity • Residual debt if any to be determined by provider of new capital
• Concurrent with completion of a restructuring
UnsecuredCreditors
$3.6 billion US Note holders
$0.5 billion Suppliers (approximate)
$1.0 billion OSX claim1
$5.1 billion Total (pari passu)
Pro Forma Equity Ownership
• 90% unsecured creditors2
• 10% existing shareholders3
Warrants to Existing OGX Shareholders
• OGX shareholders to receive 5 year warrants to acquire 15% of fully diluted reorganized OGX equity, at a strike price based upon a $1.5 billion OGX enterprise value
Obligations of Controlling Shareholder
• Maintain >50% ownership in OGX prior to dilution from restructuring • Agree to vote in favor of filing for judicial recovery • Agree to authorize issuance of new shares for restructuring• Cause the resignation of the board of directors of OGX in full immediately upon
its emergence from Restructuring
Consideration for Controlling Shareholder
• Settlement of Put option agreement with OGX • Releases from participants in restructuring from claims related to restructuring
RestructuringVenue / Process
• Brazilian judicial recovery
ConditionPrecedent
• ANP has not indicated that it will terminate OGX concessions as a result of the restructuring or otherwise challenge the restructuring
Farmout of Martelo
• Company will propose a farmout to Petronas for 40% of Martelo • Key Terms include
• $300 million payable at filing of judicial recovery • $300 million payable upon approval of the judicial recovery plan by the
General Creditors Assembly • Reimbursement of 40% of expenses post- May 1, 2013 • Elimination of WHP-2 • Elimination of pledge commitment for 40% of Martelo and 20% of BS-4
1 In connection with termination of OSX-1, OSX-2, WHP-2 and the strategic cooperation agreement, among other things. 2 Prior to dilution for management incentive plan and new capital. 3 After dilution for management incentive plan and new capital. Before issuance of warrants.
Project Olympic Draft – Confidential
2 #85164961v2
Releases • The plan of reorganization would contain mutual releases from participants in Restructuring from claims related to Restructuring and prior actions to the extent permitted by applicable law
Governance • Bylaws and governance of the reorganized Company must be satisfactory to the Ad-Hoc Group
Business Plan • Business plan for material oil & gas assets and contractual commitments associated therewith to be subject to the consent of the Ad-Hoc Group
CRO • Appointment of a Chief Restructuring Officer by and for OGX and its subsidiaries, acceptable to the Ad-Hoc Group at its sole discretion after consultation with the Controlling Shareholder
Listing • The shares of (restructured) OGX to remain listed on the Bovespa
TBM
T G
raph
ics
2
Doc
umen
t 15.
2.1.
1.7
from
the
VD
R
3
Doc
umen
t 15.
2.1.
1.7
from
the
VD
R
4
Doc
umen
t 15.
2.1.
1.7
from
the
VD
R
5
Doc
umen
t 15.
2.1.
1.7
from
the
VD
R
6
Doc
umen
t 14.
1.1.
2 fro
m th
e V
DR
7
Doc
umen
t 14.
1.1.
2 fro
m th
e V
DR
8
Doc
umen
t 14.
1.1.
2 fro
m th
e V
DR
9
Doc
umen
t 14.
1.1.
2 fro
m th
e V
DR
10
Doc
umen
t 14.
1.1.
2 fro
m th
e V
DR
11
Doc
umen
t 14.
1.1.
1 fro
m th
e V
DR
Par
naib
a G
raph
ics
13
Doc
umen
t 14.
1.3.
3 fro
m th
e V
DR
(Pag
e 8)
14
Doc
umen
t 14.
2.2.
2 in
the
VD
R (P
age
5)
15
Doc
umen
t 14.
2.2.
3 in
the
VD
R (P
age
4)
16
Req
uire
d Fi
gure
s
GVB
CAP
EX
·
20
13 -
R$
3 M
M(s
ep -
dez)
·
20
14 -
R$
30 M
M +
R$
65 M
M (W
ells
) =R
$ 95
M
M·
2015
-R
$ 20
MM
GVR
CAP
EX·
2013
~ R
$ 51
MM
(sep
-de
z)·
2014
-R
$ 24
6 M
M +
R$
25 M
M (W
ells
) =
R$
271
MM
Ope
x Br
eakd
own
(100
%; R
$ 00
0s/m
onth
)20
1320
1420
1520
16UT
G O
pera
ção
847
784
784
784
EQUI
PE D
E O
PERA
ÇÃO
- UN
ID. C
OLE
TORA
722
722
722
722
SERV
IÇO
S66
3333
33SO
BRES
SALE
NTES
5929
2929
O&
M39
935
535
535
5EQ
. OPE
RAÇÃ
O -
MAN
UT. U
NID.
CO
LETO
RA31
031
031
031
0PR
OCU
REM
ENT
TEAM
6533
3333
ADM
. FEE
EST
. S/A
QUI
SIÇO
ES24
1212
12
Cons
umív
eis
280
120
120
120
OPE
X TO
TAL
with
out W
orko
ver (
100%
)1,
526
1,25
91,
259
1,25
9
Wor
kove
r0
01,
426
907
OPE
X TO
TAL
with
Wor
kove
r (10
0%)
1,52
61,
259
2,68
52,
166
Tota
l Ope
x - O
GX
Mar
anhã
o - 7
0%1,
068
881
1,87
91,
516
Aver
age
Mon
thly
Ope
x - O
GX
Mar
anhã
o - 7
0% -
2014
-201
6 (0
00's
R$/m
onth
)1,
426
TBA
Z G
raph
ics
18
Doc
umen
t 14.
1.4.
1 in
the
VD
R (P
age
5)
Ok
to re
mov
e re
d ci
rcle
s.
19
Doc
umen
t 14.
1.4.
1 in
the
VD
R (P
ages
6 a
nd 9
)
BS
-4 G
raph
ics
21
Doc
umen
t 15.
2.2.
1.2
in th
e V
DR
(Pag
e 29
)
22
Doc
umen
t 15.
2.2.
1.1
in th
e V
DR
(Pag
e 10
)
Onl
y ne
ed R
ing
Fenc
e O
utlin
eAn
d Pm
ean
outli
ne
Exp
lora
tion
Gra
phic
s
24
Doc
umen
t 15.
4.2.
1 in
the
VD
R (P
age
12)
25
Doc
umen
t 15.
4.2.
2 in
the
VD
R (P
age
14)
26
Oth
er
0
5000
10000
15000
20000
25000
30000
nov-13 nov-14 nov-15 nov-16 nov-17 nov-18 nov-19 nov-20 nov-21 nov-22 nov-23 nov-24 nov-25 nov-26
Bbl
/day
OGX Sensitivities as of September 2013
OGX Reservoir Complexity Sensitivity
OGX Minimal CAPEX Sensitivity (4Producers Only)