Sat, Sep. 13, 3:35 PM
- Brazilian federal prosecutors said in a statement today they are looking to seize assets valued at up to 1.5B reais ($640M) belonging to fallen businessman Eike Batista. Batista is accused of market manipulation and insider trading, which could carry a sentence of up to 13 years.
- The prosecutor claims Batista simulated the injection of up to $1B into Oleo e Gas Participacoes (OTCPK:OGXPY) through a put option he never intended to fulfill, and that at the time he tabled the put option he already new shares were massively overpriced based on yet-unknown information about OGX's wells. It also claims Batista traded twice on insider information.
- A representative of Batista's EBX Group had no comment on the charges. Batista has repeatedly denied any wrongdoing in previous public statements on the case.
Fri, May. 30, 8:52 AM
- Oleo e Gas Participacoes (OGXPY) will emerge as a viable producer once creditors approve a recovery plan at a meeting scheduled for next week, CEO Paulo Narcelio says.
- Eike Batista's struggling company will eliminate most of its debt and recover financing capacity as it generates ~$500M in sales this year, enough to sustain operations, according to Narcelio.
- OGpar expects to produce an 16K bbl/day for 12 months after connecting two extra wells to its Tubarao Martelo deposit by July.
Wed, Apr. 16, 4:57 PM
- A group of investors reportedly agrees to back Eike Batista's struggling Oleo e Gas Participacoes (OGXPY) with an additional $73M, a move that could speed the energy company's exit from bankruptcy.
- Bondholder Autonomy Master Fund is said to be leading the group after objecting to the recovery plan earlier this month, saying creditors had been treated unfairly.
- As part of the restructuring plan, creditors will exchange ~$5.8B of debts owed by OGP for shares equivalent to 90% of the company's total capital, and bondholders will end up with a majority stake; Batista's stake will fall to 5.02% from 50.2%.
Tue, Jan. 14, 2:57 PM
- Brazil's Oleo e Gas Participacoes (OGXPY, OGXPF) says its only working oil field, Tubarao Martelo, off the coast of Rio de Janeiro, produced 333K boe in December.
- At the end of the month, the field was producing ~12.6K bbl/day, still far short of the ~30K the company hopes to achieve when at full production.
- "The fact that they were able to produce was positive, [but] it's not enough to regain market confidence," says a local analyst.
Dec. 30, 2013, 8:41 AM
- Eike Batista's Oleo e Gas Participacoes (OGXPY) has 15 days to pay for work done developing an offshore oil field or regulators could kick the firm out of the concession, WSJ reports.
- The Brazilian oil company owes 73M reais ($31M) for its 40% share of work done at the BS-4 offshore exploration block, the consortium's operator says.
- The late payments are the latest trouble for Oleo e Gas, which last week reached a preliminary deal with creditors to exchange ~$5.8B in debt for shares.
Dec. 6, 2013, 12:55 PM
- Embattled Brazilian oil company OGX Petroleum (OGXPY) confirms that production has started at its Tubarao Martelo oil field off the coast of Rio de Janeiro.
- OGX, which has $3.6B in international bonds outstanding, has only enough cash to continue production at Tubarao Martelo until the end of the year and has asked bondholders for at least another $150M to continue production next year.
- OGX hopes Tubarao Martelo can help it recover from bankruptcy protection, but it is unclear how much the field will be able to produce at first.
- Also, OGX is changing its name to Óleo e Gás Participações.
Nov. 21, 2013, 6:29 PM
- A Brazilian judge has accepted a request for bankruptcy protection by former billionaire Eike Batista's oil company, OGX Petroleum (OGXPY) but denied the same protection for its foreign subsidiaries, Reuters reports.
- The judge's decision will complicate the recovery process, and the company plans to appeal the ruling, OGX's lawyer tells Reuters.
- OGX sought court protection from creditors Oct. 30 after it failed to convince them to refinance $5.1B-plus in obligations, in Latin America's largest-ever corporate bankruptcy filing.
Nov. 19, 2013, 10:41 AM
- OGX Petroleum (OGXPY) loses Petronas as a financial backer for its most promising field, as the Malaysian oil company cancels a contract to buy a 40% stake in two offshore exploration blocks that include the Tubarao Martelo field.
- OGX was counting on $850M from the Petronas sale to develop the Martelo field, where it plans to start output this year.
- OGX, which claims it still plans to start producing at Martelo this year, says it's considering its legal options.
Oct. 30, 2013, 3:00 PM| Comment!
Oct. 29, 2013, 2:18 PM
- Cash-strapped OGX Petroleum (OGXPY) confirms it has failed to reach a deal with investors to restructure $3.6B in bonds, moving it closer to one of the largest corporate defaults in Latin American history.
- Documents provided to bondholders and made public today show the company expects to run out of cash in December, although people familiar with the firm have said it may not have enough cash to make it past the end of October.
Oct. 25, 2013, 2:11 PM
- OGX Petroleum (OGXPY), Eike Batista's flagship oil company, is preparing a bankruptcy protection filing in Brazil to reorganize as its cash reserves dwindle, WSJ reports.
- The so-called judicial recovery plan for reorganization is said to differ from the traditional Brazilian bankruptcy process that tends to end in liquidation.
- Cash-strapped OGX, operating with ~$3.6B of debt, reportedly asked for and failed to receive a $75M capital injection this week from creditors concerned they won't get their money back.
Oct. 16, 2013, 1:11 PM
- After soaring 48% yesterday on speculation of an ouster of Eike Batista, shares of OGX Petroleo (OGXPY.PK +56.3%) complete a 2-day double on local media reports that the company will secure a $200M capital injection from investors.
- A local analyst opined, "For the first time, the market is seeing a solution for the company that doesn't involve judicial reorganization or bankruptcy." The new money would help OGX cover development costs at its oil fields until it begins production at a new offshore oil project by year-end, the analyst believes.
- An obligation to consider: OGX missed a $45M bond coupon payment on Oct. 1, which has a 30-day grace period before OGX defaults.
Oct. 15, 2013, 7:11 PM
- OGX Petroleum (OGXPY.PK) soared 48% in Sao Paulo and 60% on the U.S over-the-counter market today amid speculation Eike Batista would leave the company he founded in a possible agreement with creditors.
- MMX Mineracao & Metalicos (MMXMY.PK), the former billionaire’s mining unit, also surged as buyers acquired a controlling stake in its iron ore port in Brazil.
- OGX shares nevertheless have slumped 92% YTD in Sao Paulo.
Oct. 4, 2013, 7:16 AM
- OGX Petroleum (OGXPY.PK) said Thursday that the Tubarao Martelo oil field offshore Brazil holds probable reserves of 87.9M boe.
- Tubarao Martelo is considered OGX's lone viable oil field after the company said earlier this year it would shut down production at the Tubarao Azul field after disappointing results.
- But the reserves certification shows Tubarao Martelo output is far from guaranteed: no proven reserves, or oil that has a 90% certainty of being produced by the field, were certified.
- OGX is counting on production from the field to start by the end of the year.
Oct. 1, 2013, 11:40 AM
- OGX Petroleo (OGXPY.PK -8.8%) will miss a $45M payment on dollar bonds today, Bloomberg reports. In a regulatory filing the company stated that it "is in a process of revising its capital structure and, at the same time, its business plan ... In light of this fact, the company decided not to pay" the interest coupon.
- OGX has a 30-day grace period before it is in default, and will attempt to renegotiate the debt during that time. A bankruptcy filing would be a negative for bondholders, according to Oppenheimer analyst Omar Zeolla, because the process would take longer than a restructuring and the government could strip the company of exploration and production licenses, leaving it with no assets.
- A default of the $3.6B in international bonds the company has would be the region's largest corporate default in history, according to Moody's.
Sep. 30, 2013, 1:34 PM
- Shares of OGX Petroleo (OGXPY.PK -18.6%) fall further as investors fear the end is near. OGX's $2.56B in debt due 2018 has tumbled to 15 cents on the dollar - Bloomberg reports that the company is set to miss a $45M interest payment due tomorrow, citing 2 sources.
- Sao Paulo magazine Veja reported over the weekend that OGX will file for bankruptcy protection in 2 weeks time as the oil producer's burn rate puts it on the brink of running out of cash to continue operations.
- In a last ditch effort, OGX hopes to receive $250M in new capital from investors in a plan to restructure $3.6B in debt so that it can extend operations long enough to start pumping oil at Tubarao Martelo.
- Shares have collapsed 99% since the beginning of 2012.
OGXPY vs. ETF Alternatives
OGX is the EBX Group company that operates in the exploration and production of oil and natural gas. Created in 2007, the company has a portfolio of potential resources estimated at 10.8 billion barrels of oil equivalent (boe).
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