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Last updated on April 16, 2014 at 7:00 EDT

Oryx Petroleum Announces Successful Oil Discovery at Zey Gawra in the Kurdistan Region of Iraq

December 4, 2013

Third Consecutive Discovery in Hawler License Area Flows at 4,800
Barrels Per Day

CALGARY, Dec. 4, 2013 /CNW/ – Oryx Petroleum Corporation Limited (“Oryx
Petroleum” or the “Corporation”) today announces the successful
discovery at Zey Gawra in the Hawler license area.. The ZEG-1 well was
flow tested at an average rate of 4,800 barrels per day of light crude
oil from an 81 metre column. A Notice of Discovery has been filed by
the Corporation with the Kurdistan Region Government. Oryx Petroleum is
the operator and has a 65% participating and working interest in the
Hawler license area.

Commenting today, Henry Legarre, Oryx Petroleum’s Chief Operating
Officer, stated:

“Hawler is proving to be a prolific license area. We are very pleased to
have made our third consecutive oil discovery there this year,
achieving excellent flow rates of high quality crude from the
Cretaceous. More work needs to be done to confirm the size of the
discovery but we believe it will be substantially larger than our
pre-drill estimates. Importantly, the reservoir characteristics in the
Cretaceous, notably the matrix porosity, confirm our experience with
the other wells we have drilled in the Hawler license area. We are
already planning our first Zey Gawra appraisal well and we are
confident that the discovery will be established as commercial.”

Testing Program and Results

The KS Discoverer rig spudded the ZEG-1 well in April 2013 targeting the
Zey Gawra prospect, an anticline lying on the Kirkuk field trend that
is the last closure to the northwest of the Khurmala Dome. The ZEG-1
well targeted oil potential in the Cretaceous, Jurassic and the
Triassic. Netherland Sewell & Associates, Inc. estimated as of March
31, 2013 that the Zey Gawra prospect contained 23 MMbbl of unrisked
gross (100%) prospective resources (risked: 9 MMbbl). ZEG-1 reached a
total depth of 4,398 metres in August when the KS Discoverer rig was
moved to spud Banan. The smaller Romfor 22 rig was then brought in to
conduct the testing.

The ZEG-1 well was logged down to the Triassic and there were oil shows
of varying quality in the Cretaceous and the Upper and Lower Jurassic.
As such, four cased hole drill stem tests (“DST”) were conducted
including two in the Lower Jurassic, one in the Upper Jurassic and one
in the Cretaceous.

The DST conducted in the Cretaceous tested the Shiranish, Kometan and
Qamchuqa intervals which are considered to form one continuous
reservoir. The Cretaceous DST was successfully flowed at sustained
rates in intervals over a period of four days using a series of
different choke sizes. The maximum average rate achieved was
approximately 4,800 bbl/d of light oil for a 15 hour period using a
64/64″ choke. No pressure decline was observed during the tests. The
crude from the Cretaceous was measured on site at 35° API gravity.
Small quantities of natural gas and hydrogen sulfide were encountered.

The 81 metre oil column in the Cretaceous was successfully established
between the free water level, as evidenced by Modular Formation
Dynamics Tester (“MDT”) measurements, and the top of the interval
perforated for testing. This oil column includes a 64 metre section in
the Qamchuqa. As with the Demir Dagh test in the Cretaceous, the matrix
porosity in the Qamchuqa, evidenced by logs and core samples, was
significantly better than the Corporation had expected. The 106 metre
section of the Shiranish above the established oil column, may also
contain oil, however the ZEG-1 well did not encounter matrix porosity
or evidence of a fracture network in this interval. The potential oil
bearing nature of the Shiranish will be further evaluated as part of
the appraisal program.

The DST conducted in the Upper Jurassic tested the Najmah formation
which has a thickness of approximately 750 metres. Without the use of a
pump, the well flowed what appears to be very heavy oil to surface on a
non-continuous basis over a 14 hour period. The quality of the oil
could not be measured properly on site and samples will be analyzed to
better assess potential in the Najmah. The results of the Najmah DST
were similar to the Najmah DST conducted at Demir Dagh.

The DSTs conducted in the Lower Jurassic tested the Mus and Adayiah
formations separately. While logging results of each formation
indicated the presence of fractures, the results of both tests were
inconclusive as the tests were unable to connect to a permeable
fracture network and flow fluids to surface.

The data gathered from the well and field tests should be considered
preliminary until such time as a pressure transient analysis or
well-test interpretation has been carried out. Test results are not
necessarily indicative of long-term performance or of ultimate recovery
.

Appraisal Plans and Conceptual Development

Oryx Petroleum is conducting further analysis of the ZEG-1 well and
intends to drill an appraisal well at Zey Gawra in 2014 as part of the
multi-well appraisal and development drilling program in the Hawler
license area. Depending upon the ultimate size of the Zey Gawra
discovery, the field could be tied into the Corporation’s planned
development at Demir Dagh or developed on a standalone basis.

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, two of
which have yielded oil discoveries and four of which are prospective
for oil. The Corporation 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). Further information about Oryx Petroleum is available at
www.oryxpetroleum.com or under Oryx Petroleum’s profile at www.sedar.com.

Reader Advisory Regarding Forward-Looking Information

Certain statements in this news release constitute “forward-looking
information”, including statements related to the Corporation’s
reserves and resources estimates and potential, drilling plans,
development plans and schedules and chance of success, 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”, “could”, “should”, “anticipate”, “believe”,
“intend”, “expect”, “plan”, “estimate”, “potentially”, “project”, 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, 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
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, 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