Encouraging Signs from drilling of Banan Exploratory Well and Spudding of First Demir Dagh Appraisal Well
Calgary, Alberta, December 6, 2013
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:
Corporate Communications Associate
Tel.: +41 (0) 58 702 93 66
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.
|For additional information about Oryx Petroleum, please contact: Craig KellyChief Financial Officer
Tel.: +41 (0) 58 702 93 23
|Scott LewisHead of Corporate Finance
Tel.: +41 (0) 58 702 93 52