OGX Petroleo and Gas Participacoes (PK:OGXPY) Hits First Dry Well

It finally had to happen for OGX Petroleo & Gas Participacoes (PK:OGXPY), and it has, as the exploration company hit its first dry oil well, after a string of 14 straight successes.

The company, while finding plenty of commercially viable oil, has yet to produce any, and while having a market value of $32.9 billion, is considered a very speculative company.

OGX primarily explores in the Campos Basin, although the miss came in the Santos Basin. The Santos basis in more difficult to read because of the heavy salts on the ocean floor, even though technology has improved a lot in that area, which has contributed to other major oil finds in the region.

The Tupi field, worked by Petrobras, is the largest oil discovery in the Americas in 34 years, and has an estimated 8 billion barrels of oil in it.

According to the company web site of OGX, they will drill a total of 27 wells in 2010, with plans for 79 through 2013.