Oryx Petroleum Corporation Limited Announces Testing Confirms Discovery Offshore Congo (Brazzaville)

Testing Confirms Reservoir Qualities and Fluid Characteristics

CALGARY, March 4, 2014 /CNW/ - Oryx Petroleum Corporation Limited ("Oryx Petroleum" or the "Corporation") today announced that the testing of the E-1 exploration well targeting the Elephant prospect in the Haute Mer A license area in Congo (Brazzaville) confirmed the discovery of natural gas and crude oil previously announced in September 2013. Oryx Petroleum has a 20% participating and working interest in the Haute Mer A license area.

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

"We are pleased with the testing of the Elephant discovery which will serve as a building block for our operations in Congo (Brazzaville). Overall the test results confirmed the previously announced discovery. Moreover, the three DSTs conducted confirmed the excellent reservoir properties of the sand channels as well as some of the fluid characteristics. We look forward to working with our partners to appraise the Elephant discovery and adding to our resource base in the Haute Mer A license area."

Elephant Testing Program and Results

On August 3, 2013, drilling of the E-1 well reached a total depth of 2,497 metres using the Jasper Explorer Drillship in 550 metres of water 80 kilometres offshore Congo (Brazzaville). The E-1 well was targeting a deeper turbiditic Tertiary play similar to the play being exploited in fields adjacent to the Haute Mer A license area, such as the Total operated Moho Bilondo producing field and the Chevron operated Block 14 in Angola. Primary targets for the E-1 well were the N5 and the N3 reservoir intervals in the Miocene Tertiary.

The E-1 well was drilled approximately 4.5 kilometres south-east of the Libonolo Marine-1 (LIBM-1) well drilled in 1997 by Elf Congo. The LIBM-1 well resulted in a discovery in the N5 interval of the Tertiary Miocene. Excellent reservoir quality was encountered with heavy oil 14° API gravity present. Based on preliminary logging and other data from the E-1 well, 30 metres of gross interval (20.3 metres net) of crude oil and 102 metres of gross interval (58.8 metres net) of natural gas were encountered in the N5 interval and 16 metres of gross interval (9.2 metres net) of crude oil were encountered in the N3 interval. Water was encountered in other secondary targeted intervals.

Three cased hole drill stem tests ("DST") were conducted in the E-1 well including one in the N3 and two in the N5.

The DST conducted in the oil bearing intervals of the N3 successfully flowed at sustained rates over a period of two and a half days using a series of different choke sizes The well flowed naturally at a maximum rate of 1,180 bbl/d of oil for a seven hour period on a 36/64" choke. The oil was measured on site at 24° API gravity with a Gas to Oil Ratio ("GOR") of 320 scf/stb. No water was encountered and no sand production was reported at surface. The preliminary analyses of the pressure gauges indicated a sand plugging of the temporary screens due to the unconsolidated character of the sand. Higher rates would be expected with a proper completion pack. The pressure build-up analysis also confirmed the excellent porosity and permeability of the reservoirs in the channel complex previously reported.

The DST conducted in the N5 oil leg successfully flowed at sustained rates in intervals over a period of two and a half days using a progressing cavity pump. The maximum average rate achieved was approximately 515 bbl/d of heavy and viscous oil for a four hour period using a progressing cavity pump. No pressure decline was observed during the tests. Determining the API gravity, GOR and viscosity of crude oil from the N5 will require  laboratory analysis. No water was encountered and no sand production was reported at surface. Analysis of the pressure gauges revealed that there was no damage or productivity impairment during the test and confirmed the excellent porosity and permeability of the sand channel complex.

The DST conducted in the gas bearing interval of the N5 successfully flowed at sustained rates over a period of 24 hours on five different choke sizes. The well flowed at a maximum rate of 21 MMscf/d on a 44/64" choke for about five hours. The natural gas that flowed was dry which confirms biodegradation. No pressure decline was observed. No sand production was reported at surface during the production but the pressure build-up analysis indicated some sand plugging that impaired productivity during the test. With a proper completion, rates would have been higher. The pressure build-up analysis also indicated excellent permeability and porosity of the sand channel complex.

The data gathered from the well and field tests should be considered preliminary until such time as a pressure transient analysis or well-test interpretation has been carried out. Test results are not necessarily indicative of long-term performance or of ultimate recovery.

Appraisal Plans for Elephant and Further Exploration in Haute Mer A

Together with the Operator of the license area, Oryx Petroleum will further analyze the test results and other data accumulated during the drilling of the E-1 exploration well and determine next steps.

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.

Reader Advisory Regarding Forward-Looking Information

Certain statements in this news release constitute "forward-looking information", including statements related to the Corporation's reserves and resources estimates and potential, drilling plans, development plans and schedules and chance of success, results of exploration activities, future drilling of new wells, ultimate recoverability of current and long-term assets, possible commerciality of our projects, future expenditures, and statements that contain words such as "may", "will", "could", "should", "anticipate", "believe", "intend", "expect", "plan", "estimate", "potentially", "project", or the negative of such expressions and statements relating to matters that are not historical fact, constitute forward-looking information within the meaning of applicable Canadian securities legislation.

In addition, information and statements in this news release relating to reserves and resources are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and that the reserves and resources described can be profitably produced in the future. See "Reserves and Resources Advisory" below.

Although Oryx Petroleum believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. In making certain statements in this news release, Oryx Petroleum has made assumptions with respect to the following: the general continuance of the current or, where applicable, assumed industry conditions, forecasts of capital expenditures and the sources of financing thereof, timing and results of exploration activities, the Corporation's ability to obtain and retain qualified staff, contractors and personnel and equipment in a timely and cost-efficient manner, the political situation and stability in jurisdictions in which Oryx Petroleum has licenses, the ability to renew its licenses on attractive terms, the applicability of technologies for the recovery and production of the Corporation's oil reserves and resources, the amount, nature, timing and effects of capital expenditures, geological and engineering estimates in respect of the Corporation's reserves and resources, the geography of the areas in which the Corporation is conducting exploration and development activities, operating and other costs, and business strategies and plans of management.

Forward-looking information is subject to known and unknown risks and uncertainties which may cause actual results or events to differ materially from those anticipated in the forward-looking information and statements if the assumptions underlying them prove incorrect, or if one or more of the uncertainties or risks described below materializes.  The risks and uncertainties affecting the Corporation include, but are not limited to, imprecision of reserves and resources estimates; ultimate recovery of reserves; ability to commercially develop its oil reserves and/or its prospective and contingent oil resources; commodity prices; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and market margins; the ability to produce and transport crude oil and natural gas to markets; weather and climate conditions; results of exploration and development drilling and other related activities; fluctuation in interest rates and foreign currency exchange rates; ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals, renewal or granting of licenses; changes in environmental and other regulations; international political events; renegotiations of contracts; reliance on key managers and personnel; dry wells may lead to a downgrading of the Corporation's licenses or contracts or require further funds to continue exploration work; future foreign currency exchange rates; risks related to the actions and financial circumstances of our agents and contractors, counterparties and joint venture partners; political uncertainty, including actions by terrorists, insurgent or other groups, or other armed conflict, including conflict between states; and expected rates of return.  More specifically, future production may be affected by exploration success, start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling and drilling progress, restrictions on ability to access necessary infrastructure, equipment and services, including but not limited to, those sourced from third party providers.  Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability and seismic costs. Risk factors are discussed in greater detail in filings made by the Corporation with Canadian securities commissions.

Readers are strongly cautioned that the above list of factors affecting forward-looking information is not exhaustive.  Although the Corporation believes that the expectations conveyed by the forward-looking information are reasonable based on information available to it on the date such forward-looking information was made, no assurances can be given as to future results, levels of activity and achievements. Readers should not place undue importance or reliance on the forward-looking information and should not rely on the forward-looking information as of any date other than the date hereof.  Further, statements including forward-looking information are made as at the date they are given and, except as required by applicable law, Oryx Petroleum does not intend, and does not assume any obligation, to update any forward-looking information, whether as a result of new information or otherwise.  If the Corporation does update one or more statements containing forward-looking information, it is not obligated to, and no inference should be drawn that it will make additional updates with respect thereto or with respect to other forward-looking information.  The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

SOURCE Oryx Petroleum Corporation Limited

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For additional information about Oryx Petroleum, please contact:

Craig Kelly
Chief Financial Officer
Tel.: +41 (0) 58 702 93 23
craig.kelly@oryxpetroleum.com
 
Scott Lewis
Head of Corporate Finance
Tel.: +41 (0) 58 702 93 52
scott.lewis@oryxpetroleum.com