Quantcast
Last updated on April 20, 2014 at 8:28 EDT

Oryx Petroleum Corporation Limited Announces Operations Update for Kurdistan Region of Iraq

September 9, 2013

Advancing exploration activities and continued progress towards first
production

CALGARY, Sept. 9, 2013 /CNW/ – Oryx Petroleum Corporation Limited (“Oryx
Petroleum” or the “Corporation”) today announced an update on its
activities in the Kurdistan Region of Iraq.

CEO`s Comment

Commenting today, Oryx Petroleum`s Chief Executive Officer, Michael
Ebsary, stated:

“We continue to make great progress on all fronts in our Hawler license
area.  Progress continues towards first production from the Demir Dagh
discovery with an early production facility now contracted and we are
advancing the balance of our exploration program. Testing of our second
exploration well at Zey Gawra will begin in the next few weeks,  
preliminary indications from the third exploration well at Ain Al Safra
are encouraging and we will spud our fourth and possibly most
significant exploration well at Banan in the next two weeks.  The
coming months in Kurdistan should be exciting as we continue to unlock
the potential we see in the Hawler license area.”

Hawler License Area

        --  Demir Dagh Discovery: Contract Signed for Early Production
            Facility

            Oryx Petroleum recently agreed to lease an Early Production
            Facility (EPF)  from Expro, an international oilfield services
            company specializing in well flow management
            (www.exprogroup.com).
            The facility will have multiple trains with the ability to
            process light, heavy, sweet or sour crudes types. The lease
            period is expected to be two years with options to purchase at
            any point during the lease. The EPF will have an initial
            capacity of 25,000 bbl/d and will be re-engineered to a
            capacity of 40,000 bbl/d. The facility is expected to be in
            place in Q1 2014 with first production planned for Q2 2014. The
            EPF may also be utilized for the appraisal of the other
            outlying prospective fields Banan and Zey Gawra.

            Site preparation has commenced for the EPF which will be
            located 150 metres from the DD-2 well site and 500 metres from
            the Khurmala to Faysh Khabur pipeline that is expected to be
            completed by the end of 2013. A truck tanker loading station
            with initial capacity of 10,000 bbl/d will also be constructed
            9.5 kilometres from the EPF near the main highway to facilitate
            domestic sales.
        --  Banan Prospect:  Spudding of BAN-1 Exploration well and
            Additional Seismic Acquisition

            Oryx Petroleum expects to spud the BAN-1 well, its fourth
            exploration well in the Hawler license area, targeting the
            Banan prospect in the next two weeks. The KS Discover-1 rig has
            completed its move off the ZEG-1 well site to the BAN-1 site
            and is preparing to spud. The BAN-1 well is targeting oil
            potential in the Cretaceous, Jurassic and Triassic and is
            expected to reach total depth of 4,153 metres in Q1 2014.

            Netherland, Sewell & Associates, Inc. ("NSAI"), an independent
            oil and gas consulting firm, estimates as of March 31, 2013
            that the Banan prospect contains 196 MMbbl of unrisked gross
            (100%) prospective resources (risked: 102 MMbbl). NSAI`s
            estimate excludes a significant portion of the Banan prospect
            that was outside the Hawler license area boundaries prior to
            the December 2012 boundary extension.  Mobilisation is underway
            for a seismic campaign to acquire approximately 210 kilometres
            of 2D seismic covering the extended portion of the license area
            that will enable the Corporation to better understand and map
            the Banan structure.

            The BAN-1 well will be drilled approximately eight kilometres
            from the DD-2 well site. The Corporation is seeking to
            establish the presence of hydrocarbons in the Banan structure
            and the distribution of hydrocarbons across the shared
            spillpoint between the Demir Dagh and Banan anticlines.  The
            results of the BAN-1 well could significantly impact
            development plans for the Demir Dagh field.
        --  Zey Gawra Prospect: Commencement of Testing of Zey Gawra
            Exploration Well (ZEG-1)

            As previously reported, the ZEG-1 well reached a total depth of
            4,398 metres in early August. Oryx Petroleum has recently
            brought in a third rig, the Romfor 22 rig, to the Hawler
            license area, and has moved it on to ZEG-1 to commence the
            testing program. Based on logging of hydrocarbon bearing zones
            the Corporation intends to test four zones with one additional
            test contingent on results of the fourth test.  Depending on
            how many tests are conducted, the Corporation expects the
            testing program to be completed in  Q4.

            The ZEG-1 well is targeting oil potential in the Cretaceous,
            Jurassic and Triassic. NSAI estimates as of March 31, 2013 that
            the Zey Gawra prospect contains 23 MMbbl of unrisked gross
            (100%) prospective resources (risked: 9 MMbbl).
        --  Ain Al Safra Prospect: Progress of Ain Al Safra Exploration
            Well (AAS-1)

            As previously reported, the Sakson Hilong 10 rig spudded an
            exploration well targeting the Ain Al Safra prospect in the
            Hawler license area in early June. The AAS-1 well is targeting
            oil potential in the Cretaceous, Jurassic and Triassic. NSAI
            estimates as of March 31, 2013 that the Ain Al Safra prospect
            contains 225 MMbbl of unrisked gross (100%) prospective
            resources (risked: 44 MMbbl).

            The AAS-1 well has reached depth of approximately 3,000 metres
            in the lowermost Jurassic. The AAS-1 was originally scheduled
            to drill to a total depth of 3,700 metres in Q4 2013. Based on
            logging information and observations during drilling the
            Cretaceous reservoir has been deemed wet. However, in the lower
            Jurassic reservoirs, free oil on the shakers and sizable losses
            of drilling fluids have been observed with significant
            quantities of oil flowing to surface while drilling. Based on
            these observations during drilling and logging information,
            testing of at least three zones in the lower Jurassic is
            planned.

            Very heavy losses of drilling fluids were experienced at
            current total depth, which is symptomatic of a significant
            permeable fracture system. The losses and related absence of
            drilling fluids caused the bottom hole assembly (BHA) to become
            stuck. Attempts to free the BHA to date have been unsuccessful.
            The Corporation now plans to secure the well and test the lower
            Jurassic reservoirs. Further drilling into the Triassic will be
            dependent on the testing of the lower Jurassic reservoirs. The
            lower Jurassic testing is expected to commence in the next two
            weeks and conclude in early Q4.

Sindi Amedi License Area

        --  Conclusion of Seismic Acquisition and Analysis and
            Relinquishment of License

            A campaign targeting acquisition of approximately 145
            kilometres of 2D seismic was completed in mid-August.  The
            seismic covered the Gara East and Tawke East prospects. Based
            on analysis of the recently collected seismic data and prior
            data, Oryx Petroleum and its partner in the license area
            concluded that none of the identified prospects meet acceptable
            risk-reward parameters and that the license area should be
            relinquished. The partners have fulfilled all work commitments
            under the Production Sharing Contract as amended earlier in
            2013. Capital earmarked for Sindi Amedi will be re-deployed
            elsewhere in the Corporation's portfolio.

ABOUT ORYX PETROLEUM CORPORATION LIMITED

Oryx Petroleum is an international oil exploration company focused in
Africa and the Middle East. The Corporation`s shares are listed on the
Toronto Stock Exchange under the symbol “OXC”. The Oryx Petroleum group
of companies was founded in 2010 by The Addax and Oryx Group Limited
and key members of the former senior management team of Addax Petroleum
Corporation. Oryx Petroleum has interests in six license areas
prospective for oil and is the operator or technical partner in four of
the six license areas. Two license areas are located in the Kurdistan
Region and the Wasit governorate (province) of Iraq and four license
areas are located in West Africa in Nigeria, the AGC administrative
area offshore Senegal and Guinea Bissau, and Congo (Brazzaville).

Reader Advisory Regarding Forward-Looking Information

Certain statements in this news release constitute “forward-looking
information”, including statements related to the nature, timing and
effect of the Corporation’s future capital, business and acquisition
strategy and goals, opportunities, reserves and resources estimates and
potential, drilling plans, development plans and schedules and chance
of success, future seismic activity, results of exploration activities,
future drilling of new wells, ultimate recoverability of current and
long-term assets, possible commerciality of our projects, future
expenditures, and statements that contain words such as “may”, “will”,
“would”, “could”, “should”, “anticipate”, “believe”, “intend”,
“expect”, “plan”, “estimate”, “budget”, “outlook”, “propose”,
“potentially”, “project”, “forecast” or the negative of such
expressions and statements relating to matters that are not historical
fact, constitute forward-looking information within the meaning of
applicable Canadian securities legislation.

In addition, information and statements in this news release relating to
reserves and resources are deemed to be forward-looking information, as
they involve the implied assessment, based on certain estimates and
assumptions, that the reserves and resources described exist in the
quantities predicted or estimated, and that the reserves and resources
described can be profitably produced in the future. See “Reserves and
Resources Advisory” below.

Although Oryx Petroleum believes these statements to be reasonable, the
assumptions upon which they are based may prove to be incorrect. In
making certain statements in this news release, Oryx Petroleum has made
assumptions with respect to the following: the general continuance of
the current or, where applicable, assumed industry conditions,
forecasts of capital expenditures and the sources of financing thereof,
timing and results of exploration activities, access to local and
international markets for future crude oil production, if any and
future crude oil prices, the Corporation’s ability to obtain and retain
qualified staff, contractors and personnel and equipment in a timely
and cost-efficient manner, the political situation and stability in
jurisdictions in which Oryx Petroleum has licenses, the ability to
renew its licenses on attractive terms, the Corporation’s future
production levels, the applicability of technologies for the recovery
and production of the Corporation’s oil reserves and resources, the
amount, nature, timing and effects of capital expenditures, geological
and engineering estimates in respect of the Corporation’s reserves and
resources, the geography of the areas in which the Corporation is
conducting exploration and development activities, operating and other
costs, the extent of the Corporation’s liabilities, and business
strategies and plans of management.

Forward-looking information is subject to known and unknown risks and
uncertainties which may cause actual results or events to differ
materially from those anticipated in the forward-looking information
and statements if the assumptions underlying them prove incorrect, or
if one or more of the uncertainties or risks described below
materializes.  The risks and uncertainties affecting the Corporation
include, but are not limited to, imprecision of reserves and resources
estimates; ultimate recovery of reserves, ability to commercially
develop its oil reserves and/or its prospective and contingent oil
resources; commodity prices; general economic, market and business
conditions; industry capacity; competitive action by other companies;
refining and market margins; the ability to produce and transport crude
oil and natural gas to markets; weather and climate conditions; results
of exploration and development drilling and other related activities;
fluctuation in interest rates and foreign currency exchange rates;
ability of suppliers to meet commitments; actions by governmental
authorities, including increases in taxes; decisions or approvals of
administrative tribunals, renewal or granting of licenses; changes in
environmental and other regulations; international political events;
renegotiations of contracts; reliance on key managers and personnel;
dry wells may lead to a downgrading of the Corporation’s licenses or
contracts or require further funds to continue exploration work; future
foreign currency exchange rates; risks related to the actions and
financial circumstances of our agents and contractors, counterparties
and joint venture partners; political uncertainty, including actions by
terrorists, insurgent or other groups, or other armed conflict,
including conflict between states; and expected rates of return.  More
specifically, future production may be affected by exploration success,
start-up timing and success, facility reliability, reservoir
performance and natural decline rates, water handling and drilling
progress, restrictions on ability to access necessary infrastructure,
equipment and services, including but not limited to, those sourced
from third party providers.  Capital expenditures may be affected by
cost pressures associated with new capital projects, including labour
and material supply, project management, drilling rig rates and
availability and seismic costs. Risk factors are discussed in greater
detail in filings made by the Corporation with Canadian securities
commissions.

Readers are strongly cautioned that the above list of factors affecting
forward-looking information is not exhaustive.  Although the
Corporation believes that the expectations conveyed by the
forward-looking information are reasonable based on information
available to it on the date such forward-looking information was made,
no assurances can be given as to future results, levels of activity and
achievements. Readers should not place undue importance or reliance on
the forward-looking information and should not rely on the
forward-looking information as of any date other than the date hereof. 
Further, statements including forward-looking information are made as
at the date they are given and, except as required by applicable law,
Oryx Petroleum does not intend, and does not assume any obligation, to
update any forward-looking information, whether as a result of new
information or otherwise.  If the Corporation does update one or more
statements containing forward-looking information, it is not obligated
to, and no inference should be drawn that it will make additional
updates with respect thereto or with respect to other forward-looking
information.  The forward-looking information contained in this news
release is expressly qualified by this cautionary statement.

Reserves and Resource Advisory 

Oryx Petroleum’s reserves and resource estimates have been prepared and
audited in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook.

Prospective oil resources are those quantities of petroleum estimated,
as of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Prospective oil resources have both a chance of discovery and a chance
of development. There is no certainty that any portion of the
prospective resources will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any portion of
the prospective resources.

 

SOURCE Oryx Petroleum Corporation Limited


Source: PR Newswire