OSX Receives New US$ 500 Million Capitalization

Press Release
Wednesday, October 17, 2012

With new commitment for up to additional US$ 500 million capitalization until March 2014.

OSX exercised the put option in the amount equivalent in Brazilian Reais to US$ 500 million, which has been approved unanimously by the independent members of the Board of Directors of the Company pursuant to the respective agreement dated 16 March 2010 among the Company and its controlling shareholders aiming to provide the Company with additional equity for the execution and implementation of its business plan, as recommended by the Company’s management.

As a result of this exercise, capital increases will be implemented by OSX totaling US$ 500 million until 23 March 2013, with the issuance of new common shares of OSX at the issuance price set in the Put Option Agreement, corresponding to the price per share offered in the Initial Public Offering of the Company adjusted for inflation (IGP-M/FGV). A capital increase in the amount equivalent in Brazilian Reais to US$ 250 million will be implemented until October 26 and the balance of the exercised Put Option equivalent to US$ 250 million will be the subject to capital increases to be implemented until 23 March 2013.

Additionally, the controlling shareholders of the Company have agreed to extend until 23 March 2014 the right granted to OSX to exercise the balance of the amount of the Put Option, totaling additional US$ 500 million. This initiative will enable that, even after this exercise of the Put Option in the amount equivalent to US$ 500 million, the Company remains entitled to the right to require that its controlling shareholders subscribe new capital increases in the amount equivalent to up to additional US$ 500 million for an additional period of one year. This new commitment by the controlling shareholders of OSX reaffirms the perspective that the new total capitalization of OSX resulting from the Put Option Agreement may reach the total amount of US$ 1 billion until March 2014.

As a result of the exercise of the Put Option, the Company initiated the procedures specified in the Put Option Agreement and the applicable legislation, with its respective legal disclosure.

For Carlos Bellot, CEO of OSX: “The exercise of the Put Option by the management of the Company secures US$ 500 million of new capital necessary to perform the business plan of OSX. Further, the delivery of OSX’s business plan is entitled to an additional new capitalization of up to US$ 500 million until March 2014. With the soundness of these capitalizations, our OSX’s team continues working firmly for the development of oil and gas production in Brazil.”


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