Óleo e Gás Participações S.A. - Em Recuperação Judicial ("Company" or "OGpar"), announces that the oil and gas regulatory agency from Colombia ("Agencia Nacional de Hidrocarburos" or "ANH") has not approved the proposal for the sale of OGX's Colombian assets ("Proposal"), located in the Cesar Ranchería Basin (Blocks "CR-2", "CR-3" and "CR-4") and in the Low Magdalena Valley Basin (Blocks "VIM-5" and "VIM-19" - "Assets"), of which the offer had been the object of the April 25, 2014 Material Fact. As a result, the ANH also has canceled the contracts of technical evaluation related to the blocks in the Cesar Rancheria Basin, as well as has exercised the credit letters ("Stanby Letters") pledged as collateral and issued by the guarantor bank in the approximately amount of US$24 million. The rejection by ANH is connected to the investments allocation related to exploration commitments contained in the Proposal.

The blocks in the Cesar Ranchería Basin have difficulty in performing any exploration works, as being an area characterized by social and environmental complexities, including the presence of indigenous communities and environmental protection areas. Further, the economic analysis in this area revealed an inappropriate risk versus return profile. For this reason the Company decided not to contest the agency's decision on the cancellation of the contracts, but it is studying strategies to reduce other possibly required penalties.

However, is worth announcing that OGX and the Oferror signed on July 10, 2014 a new agreement on the total amount of US$30 million, in order to present a new proposal to ANH regarding the sale of the Remaining Assets located in the Low Magdalena Valley basin, under the contracts of "VIM-5" and "VIM-19" ("Remaining Assets").

Finally, the Company informs that OGX is taking the appropriate steps in order to avoid that the exercising of the credit letters by ANH to take effect over its patrimony and that the new proposal be considered regarding the full or part sale of its Remaining Assets.

The shareholders and the market will be promptly informed of the progress of negotiations and other relevant events related to the object of the present disclosure.

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