Brazil's OGX Waimea output slips in Nov, 3rd T. Azul well ready

Tue Dec 4, 2012 7:59am EST

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* Output at 5,100 boepd in November, 100 less than October

* Third Tubarao Azul well to connect to FPSO within weeks

SAO PAULO Dec 4 (Reuters) - Brazilian oil start-up OGX , controlled by billionaire Eike Batista, on Tuesday said that average daily output from its offshore Waimea complex fell by 100 barrels in November to 5,100 barrels of oil per day equivalent.

November's output was the lowest monthly average since Waimea began producing in February with just one well that reached 11,600 boepd that month. Output has slipped fairly steadily since despite a second well coming online in May.

Output from Waimea, located in the Campos Basin off the coast of Rio de Janeiro and now producing from two wells, has lagged far behind initial hopes it would pump as much as 23,000 barrels per day.

OGX plans to use water injection in Waimea at a later stage to boost well pressure and maintain flows.

Separately, the company said in a statement it would connect a third well in the Tubarao Azul field to the OSX-1 floating production, storage & offloading (FPSO) platform in the coming weeks.

Shares traded on Sao Paulo's BM&FBovespa stock exchange rose 0.92 percent at the outset of the trading session, as the broader index rose 0.2 percent. OGX shares have recently fallen to their lowest price since around February 2009.

OGX stock, and shares in other companies in Batista's EBX conglomerate that operates in mining, shipbuilding, ports and power generation, have been pummeled this year as investors grow impatient with project delays and missed production targets.

Batista bought $1 billion of OGX stock in October to demonstrate his confidence in the company's prospects. See:

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