In the fourth cargo, with production of the two wells stabilized and a better realized oil price, profitability of the operation improved.

The following table demonstrates the effective daily rates (in USD) of each of the costs associated with the FPSO OSX-1 operation:

Daily Cost (USD '000)

1st cargo

2nd cargo

3rd cargo

4th cargo

Leasing         (268)         (262)         (268)         (259)         (264)
OSX Services         (155)         (143)         (143)         (139)         (144)
Logistics         (134)         (147)         (141)         (113)         (131)
Others         (10)         1         (6)         (9)         (7)
Total         (567)         (551)         (557)         (520)         (546)

Tubarão Martelo Field Development

Following the declaration of commerciality of the field and OGX’s submission of a Development Plan, ANP granted the Company authorization to begin drilling the production wells in this field. OGX is now concluding the drilling and completing the 3 horizontal production wells (TBMT-2HP, TBMT-4HP and TBMT-6HP). We expect these wells to be connected to FPSO OSX-3, which is scheduled to arrive by 3Q13. The Tubarão Martelo Field is scheduled to come on-stream by 4Q13.