News

Oryx Petroleum Announces Appraisal Drilling Update for Demir Dagh in Kurdistan Region of Iraq

19 May 2014

Calgary, Alberta, May 19, 2014

Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Corporation”) today announces the test results for the Demir Dagh-3 well (“DD-3”) and Demir Dagh-5 well (“DD-5”) appraisal in the Hawler license area in the Kurdistan Region of Iraq. Oryx Petroleum is the operator and has a 65% participating and working interest in the Hawler license area.

Highlights:

• DD-3
  - All four tests successfully flowed oil with the highest achieved sustained rate exceeding 4,000 bbl/d
  - First successful test of Butmah formation in the Lower Jurassic at Demir Dagh
  - Second successful test of the Adaiyah formation in the Lower Jurassic at Demir Dagh
  - Third successful test of the Cretaceous reservoir at Demir Dagh
  - Crude characteristics and porosities similar to other wells drilled at Demir Dagh
  
  

• DD-5
  - Logging data and drilling fluid losses experienced during drilling indicated the presence of hydrocarbons and a permeable fracture network with matrix porosity similar to other Demir Dagh wells
  - Only small quantities of oil flowed to surface during testing due to the inability to re-connect to the permeable fracture network indicated by logging data and losses
  
  

• 2014 Demir Dagh Appraisal and Development
  - First production on target for this quarter and full year 2014 production guidance unchanged
  - Demir Dagh-6 well (“DD-6”) recently spudded and expected to reach total depth in early Q3 2014
  - DD-6 and four additional development wells to be drilled in 2014 as deviated wells to Lower Cretaceous
  - 3D seismic campaign to commence in June 2014
  
  

Commenting today, Henry Legarre, Oryx Petroleum’s Chief Operating Officer, stated:
“We are very pleased with the results of DD-3. We successfully flowed oil from the well´s primary targets in the Cretaceous and Lower Jurassic reservoirs. The results confirmed the presence of similar crude qualities for all reservoirs tested as experienced at other wells drilled at Demir Dagh. DD-3 is being completed as a Cretaceous producer together with DD-2 and DD-4 and first production will be achieved soon. Our production guidance for 2014 remains unchanged.

At DD-5 there was evidence of a permeable fracture network, hydrocarbons and matrix porosity similar to observed in the Cretaceous at other Demir Dagh wells. However, the well tested only small quantities of oil as it was unable to re-connect to the permeable fracture network. DD-5 and DD-3 results will be considered together with results and data obtained from other Demir Dagh appraisal activities in the Corporation´s year end reserves and resources update.

We have now spudded DD-6 and expect to drill four additional development wells at Demir Dagh this year in order to increase production capacity and continue delineating the field. DD-6 will be the first deviated well in Demir Dagh which is generally dominated by vertically oriented fractures. We anticipate DD-6 will provide greater information regarding the fracture network’s characteristics while also allowing us to better access the fracture network for future production.”