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Last updated on April 17, 2014 at 12:01 EDT

Oryx Petroleum Announces Drilling Update for Kurdistan Region of Iraq and Congo (Brazzaville)

December 6, 2013

Encouraging Signs from Drilling of Banan Exploration Well and Spudding
of First Demir Dagh Appraisal Well

CALGARY, Dec. 6, 2013 /CNW/ – Oryx Petroleum Corporation Limited (“Oryx
Petroleum” or the “Corporation”) today announces an update on its
drilling activities at Banan and Demir Dagh in the Hawler license area
in the Kurdistan Region of Iraq and at Horse in the Haute Mer A license
area in Congo (Brazzaville).

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

“We continue to make excellent progress in the Hawler license area.
Preliminary indications from the Banan exploration well continue to be
encouraging and we have spudded our first appraisal well at Demir Dagh
with the re-completion of the Demir Dagh discovery well soon to
follow. In Haute Mer A the results of the high risk Horse well were
disappointing; however, we will now accelerate testing of the
previously announced Elephant discovery.”

Hawler License Area

Banan Exploration Well

As previously reported, the KS Discoverer 1 rig spudded the BAN-1 well,
the Corporation`s fourth exploration well in the Hawler license area,
targeting the Banan prospect in mid-September. The BAN-1 well is
targeting light oil potential in the Lower Jurassic and Triassic, and
medium oil potential in the Cretaceous and Upper Jurassic. Netherland,
Sewell & Associates (“NSAI”) estimates as of March 31, 2013 that the
Banan prospect contains 196 MMbbl of best estimate 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.

The well has now reached a depth of approximately 3,550 metres in the
uppermost Triassic and is expected to reach a total depth of 4,153
metres and test in Q1 2014. As previously indicated, logging data,
core analysis and observations during drilling in the Cretaceous
confirms the presence of hydrocarbons and similar reservoir properties
as observed at Demir Dagh. Logging data and observations during
drilling, including free oil on the shakers and cuttings also confirm
the presence of hydrocarbons in the Upper and Lower Jurassic. Losses
of drilling fluids also indicated existence of a permeable fracture
network. While these are encouraging indications, no conclusions can be
reached until a testing program is conducted.

Demir Dagh Appraisal

The first well in the Demir Dagh Appraisal program (DD-3) was spudded in
mid-November and is expected to reach a total depth of 4,115 metres in
Q2 2014. The well is being drilled down flank of the anticline
approximately three kilometres to the southeast of the DD-2 discovery
well and will test the Cretaceous, Jurassic and Triassic reservoirs.
The DD-3 well is on schedule, having reached a depth of approximately
1,600 metres in the uppermost Cretaceous. Drilling experience to date
with DD-3 has been consistent with the drilling of the DD-2 discovery
well.

In addition, the Romfor 22 rig that successfully tested the Zey Gawra
(ZEG-1) discovery well is now moving to Demir Dagh to re-complete
DD-2. The re-completion will allow for oil production from Demir
Dagh’s Cretaceous reservoirs once the Corporation’s production
facilities are operational, which is expected in Q2 2014.

Oryx Petroleum is the operator and has a 65% participating and working
interest in the Hawler license area.

Haute Mer A License Area

Horse Exploration Well

The Jasper Explorer Drillship spudded the H-1 well targeting the Horse
prospect (formerly Ma) in early September and reached a total depth of
5,522 metres in late November. The well was drilled in 1,038 metres of
water 80 kilometres offshore Congo (Brazzaville) in the western portion
of the Haute Mer A license area. Primary targets were the Tertiary N3
reservoir, a turbidite play, and the deeper Cretaceous reservoir, an
Albian age carbonate play. The principal exploration risks for Horse
were reservoir quality and lack of hydrocarbon charge. Although the
H-1 well encountered both Tertiary and Cretaceous reservoirs with good
porosity, the reservoirs were water bearing. The Corporation and its
partners will analyze and incorporate the information obtained from the
drilling of Horse into the plans for the Haute Mer A license area in
which Oryx Petroleum has a 20% participating and working interest. The
Jasper Explorer will now move to test the previously announced Elephant
discovery.

Capital Markets Day

As previously announced, Oryx Petroleum will host its first annual
Capital Markets Day on December 10, 2013 in Toronto, Canada.

For additional information about this event, please contact:

Leon Law

Corporate Communications Associate

Tel.: +41 (0) 58 702 93 66

leon.law@oryxpetroleum.com

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