News

Oryx Petroleum Resumes Operations in the Kurdistan Region of Iraq

03 September 2014

Calgary, Alberta, September 3, 2014

Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Group”) today announces an update for its operations in the Hawler license area of the Kurdistan Region of Iraq (“Kurdistan Region”).

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

“We are very pleased that tangible improvements to the security environment in the Kurdistan Region have enabled us to resume all activities at our core asset, the Demir Dagh field. The resumption of production at higher levels after only a short interruption is very positive and, while the interruption will result in delays in our development schedule, we hope to minimise those and continue our rapid ramp-up in production.

Appraisal activities at our Ain Al Safra and Banan discoveries remain suspended pending further improvement in the security environment in the westernmost portions of the Hawler license area. Preparations for drilling at Zey Gawra continue but timing of actual drilling is not yet certain.

We are encouraged by the response of the Kurdistan Region and Iraq authorities, together with the support of the international community, to the conflict in northern Iraq. We continue to closely monitor the situation in close co-ordination with authorities in the Kurdistan Region and continue to take measures needed to ensure the safety of our personnel and operations.”

Demir Dagh

Oryx Petroleum recently resumed crude oil production and sales into the domestic market at the Demir Dagh field in the Hawler license area at rates in excess of those prior to the temporary halt in August. Production and sales have averaged approximately 4,300 barrels per day over the past 10 days with daily volumes achieved in recent days of over 5,000 barrels. Payments for sales have also resumed.

Expansion of production facilities has resumed with sizable capacity increases expected in the coming months. Completion of the Demir Dagh-4 well flowline is expected shortly, and preparations for installation of flowlines for the Demir Dagh-3, Demir Dagh-8 (“DD-8”) and Demir Dagh-9 wells have resumed. Additionally, work has progressed to connect the production facilities to the Kurdistan - Turkey export pipeline with completion expected in the fourth quarter of this year.

The EDC Romfor 22 rig recently completed the drilling of the Demir Dagh-7 development well, reaching a total measured depth of approximately 1,900 metres in the lower Cretaceous. The rig has now spudded the DD-8 development well which is expected to be drilled to a measured depth of approximately 2,100 metres in the Cretaceous. Both wells are being drilled from the same drill pad and will be tested upon the completion of DD-8 drilling early in the fourth quarter of this year. Two additional Demir Dagh development wells are expected to be spudded before the end of this year.

3D seismic data has also been acquired over the Demir Dagh structure in recent weeks which will help delineate the field and guide selection of sites for future development wells.

Zey Gawra

In the south portion of the Hawler license area, operations at Zey Gawra are secure and 3D seismic data acquisition is planned in the coming weeks. Preparations have commenced for the drilling of a planned appraisal well at Zey Gawra prior to year end, but drilling will depend on the evolution of the security environment and the related timing of rig releases from other drilling sites in the Hawler license area.

Ain Al Safra and Banan

Appraisal drilling locations at each of Ain Al Safra and Banan, in the northwest and west- portions of the license area, respectively, have been protected and security at each site has been enhanced in recent weeks. However, the resumption of drilling and testing activities will require sustained improvements in the security environment, the timing and achievement of which are uncertain.