News

Oryx Petroleum Announces Spudding of Banan-2 Appraisal well in the Hawler License Area in the Kurdistan Region of Iraq

09 June 2014

Calgary, Alberta, June 9, 2014

Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Corporation”) today announces that the Banan-2 appraisal well (“BAN-2”) has been spudded 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.

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

“We are very excited to have successfully accelerated the spudding of the BAN-2 appraisal well. This is one of the most important wells we will drill in 2014 as it allows us to assess the multi-hundred million barrel potential up-dip of the Banan-1 exploration well that was successfully tested earlier this year. The drilling of BAN-2 and the acquisition of 3D seismic in the next few months should provide us with a better understanding of the full potential of the Banan discovery.”

The Sakson Hilong 10 rig spudded the BAN-2 appraisal well approximately 5 kilometres to the North-West of the Banan-1 exploration well (“BAN-1”). As announced on March 12, 2014 oil was successfully flowed in two cased-hole drill stem tests on the BAN-1 exploration well, one in each of the Cretaceous (Shiranish and top Kometan formations) and the Lower Jurassic (Butmah formation). Additionally, the drilling and test results showed the development of additional reservoirs that will be further appraised and tested as part of the appraisal program for Banan.

Prior to the start of the BAN-1 testing program, Netherland, Sewell & Associates, Inc. (“NSAI”) estimated as of December 31, 2013 that the Banan discovery contains low, best and high estimates unrisked gross (100%) contingent oil resources of 5, 40 and 440 MMbbl, respectively, all in the Cretaceous formations. NSAI also estimated, as of December 31, 2013, prior to drilling and testing of Jurassic and Triassic formations, that the Banan structure also contains best estimate unrisked gross (100%) prospective oil resources of 235 MMbbl (risked: 46 MMbbl) in the Tertiary Pila Spi formation, the Jurassic Alan, Mus, Adaiyah and Butmah formations, and the Triassic Kurra Chine formation. See “Reserves and Resources Advisory” below for additional information regarding these estimates.

The BAN-1 well targeted oil potential in the Cretaceous, Upper and Lower Jurassic and the Triassic. Due to challenging control conditions experienced in the Triassic, where the well encountered and flowed hydrocarbons to surface, BAN-1 was plugged back to 3,400 metres in the lower Jurassic formations.

The BAN-1 well was drilled down-dip of the crest of the Banan structure. The Corporation believes significant up-dip potential exists in all formations. The up-dip potential in the Cretaceous formations in particular is underscored by NSAI´s high estimate of contingent resources for Banan. BAN-2 is targeting oil potential in Cretaceous, Jurassic and Triassic formations and is planned to be drilled to a total measured depth of 3,800 metres. The well is expected to reach targeted total depth and complete testing in Q4 2014.