News

Oryx Petroleum Q2 2014 Financial and Operational Results

06 August 2014

Calgary, Alberta, August 6, 2014

An active quarter highlighted by first production and sales

Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Group”) today announces its financial and operational results for the quarter ended June 30, 2014.

Highlights:

• Production commenced in June 2014 with gross (100%) production averaging 3,200 bbl/d (working interest production of 2,100 bbl/d) for the twelve days of production in Q2 2014

• Operations continue safely in the Hawler License Area in the Kurdistan Region of Iraq

• Total revenues consisted of $1.4 million on working interest sales of 20,000 bbls and an average realized sales price of $57.73/bbl

• Net loss of $8.7 million ($0.09 per common share) in Q2 2014 compared to a net loss of $38.5 million ($0.43 per common share) in Q2 2013

• $55 million of cash and cash equivalents as of June 30, 2014; $262 million including the $207 million in net proceeds from the offering of common shares completed July 18, 2014 

• Revised 2014 capital expenditure forecast of $370 to $410 million ($180 to $220 million for 2H 2014)

• Operating Update and Outlook – Hawler License Area (Kurdistan Region of Iraq)
  - Demir Dagh Production and Facilities – First production of oil was achieved during the quarter; the current gross capacity of facilities is approximately 5,000 bbl/d and current gross wellhead production capacity is approximately 15,000 bbl/d; gross (100%) production of 25,000 bbl/d is targeted by the end of Q4 2014
  - Demir Dagh Sales – First sales of oil into the domestic market were achieved during the quarter; installation of tie-in lines to the KRI-Turkey export pipeline are underway
  - Demir Dagh Appraisal and Development Drilling – during the quarter, successful testing of the Demir Dagh-3 (“DD-3”) appraisal well and the Demir Dagh-6 (“DD-6”) development well was completed, the Demir Dagh-7 (“DD-7”) development well was spudded and a 3D seismic data acquisition program was commenced; three additional development wells are planned in 2014
  - Ain Al Safra Appraisal – The Ain Al Safra-2 (“AAS-2”) appraisal well has reached total depth of 3,700 metres and a testing program in the Jurassic and Triassic reservoirs will commence in the next few weeks
  - Banan Appraisal – The Banan-2 (“BAN-2”) appraisal well was spudded in early June 2014 and has reached a depth of approximately 2,600 metres with test results expected in Q4 2014
  - Zey Gawra Appraisal – The Zey Gawra-2 (“ZEG-2”) appraisal well is expected to be spudded in Q3 2014

• Operations Update and Outlook – West Africa
  - AGC Shallow – Preparations continue for a potentially high impact exploration well targeting the Dome Iris prospect with the well likely to be drilled in the first half of 2015
  - Haute Mer A – The Group continues to work with its partners in the Haute Mer A license area to determine next steps following the successful test of the Elephant-1 discovery
  - Haute Mer B – Planning for a potentially high impact exploration well continues with drilling expected in the first half of 2015

CEO´s Comment

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

“The second quarter for Oryx Petroleum was highlighted by the achievement of first production and sales and continued execution of our drilling program. Importantly, and notwithstanding difficult market conditions, we completed an offering of common shares in July. The net proceeds of the offering will fund our operations into 2015.

Activity in the quarter was focused in the Kurdistan Region of Iraq where we commissioned production facilities at the Demir Dagh field and commenced production and sales in the domestic market. We expect to steadily increase production and sales throughout the year as we prepare for export sales. Our exploration and appraisal drilling program during the quarter included the completion of drilling and testing of three wells at Demir Dagh. Appraisal drilling at Ain Al Safra continues with results of a testing program expected in the third quarter of 2014. We spudded the very important BAN-2 appraisal well and are making good progress. Through the balance of the year we will continue appraisal and development drilling in the Hawler license area with the aim of converting contingent resources into reserves, and reserves into production.”