Oryx Petroleum Announces Spudding of Banan-2 Appraisal well in the Hawler License Area in the Kurdistan Region of Iraq
Key well targeting substantial up-dip potential of the Banan Discovery
CALGARY, June 9, 2014 /CNW/ - 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.
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.
Although Oryx Petroleum believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. For more information about these assumptions and risks facing the Corporation, refer to the Corporation`s annual information form dated March 12, 2014 available at www.sedar.com and the Corporation`s website at www.oryxpetroleum.com. Further, statements including forward-looking information in this news release 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, future events 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.
Reserves and Resources Advisory
Oryx Petroleum's reserves and resource estimates have been prepared and audited in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook.
Contingent oil resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent oil resources entail additional commercial risk than reserves and adjustments for commercial risks have not been incorporated in the summaries of contingent oil set forth in this news release. There is no certainty that it will be commercially viable to produce any portion of the contingent oil resources. Moreover, the volumes of contingent oil resources reported herein are sensitive to economic assumptions, including capital and operating costs and commodity pricing.
Prospective oil resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective oil resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the prospective resources will be discovered. The risked prospective oil resources reported in this news release are partially risked resources that have been risked for chance of discovery, but have not been risked for chance of development. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources.
Use of the word "gross" to qualify a reference to resources means, in respect of such resources, the total resources prior to the deductions specified in the production sharing contract. Reference to 100% indicates that the applicable resources are volumes attributed to the discovery as a whole and do not represent the company's working interest in such resources.
SOURCE Oryx Petroleum Corporation LimitedFor further information:
For additional information about Oryx Petroleum, please contact:
Chief Financial Officer
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