Oryx Petroleum Announces an Updated 2015 Capital Expenditure Forecast and $100 million in New Funding

A $100 million credit facility along with reduced capital expenditures in 2015 ensure financial flexibility and continued growth

CALGARY, March 11, 2015 /CNW/ - Oryx Petroleum Corporation Limited ("Oryx Petroleum" or the "Group") today announces an update on its 2015 capital expenditure plans and funding.


  • A 2015 capital expenditure forecast of $140 million
    • a 60% reduction against the budget of $350 million set in November 2014
    • includes a 30% reduction in general and administrative costs
  • Capital expenditures to be focused on production activities in the Hawler license area in the Kurdistan Region of Iraq
    • development drilling at Demir Dagh
    • completion of the Demir Dagh early production facilities ("EPF") and tie-ins to the expanded Kurdistan Region-Turkey international export pipeline.
  • Target production guidance of 35,000 to 45,000 bbl/d by the end of 2015 remains unchanged
  • A commitment by The Addax & Oryx Group P.L.C. ("AOG") to provide up to $100 million in the form of an unsecured credit facility.
    • compensation includes interest of 10.5% per annum and receipt of warrants to purchase up to 12 million shares of Oryx Petroleum

CEO's Comment

Commenting today, Oryx Petroleum's Chief Executive Officer, Michael Ebsary, stated:

"We continue to increase our financial flexibility in light of lower international oil prices and the disruptions to market access and payment in the Kurdistan Region of Iraq ("KRI").  Accordingly, we have moderated our capital expenditure plans to focus on our core development assets to enable us to achieve our targeted near term production growth.  We are also reducing costs throughout the organization in order to increase our overall efficiency.

We have also obtained an additional funding commitment from our major shareholder which significantly enhances our liquidity position, while maintaining financial and operational flexibility to react quickly to changes in our operating environment."

2015 Capital Expenditure Forecast

The forecast capital expenditures for 2015 is now $140 million, of which $125 million is proposed for use in the Hawler license area, comprising:

  • $48 million for the completion of the Demir-Dagh EPF and the tie-in to the KRI-Turkey export pipeline;
  • $54 million for development drilling, including 5 development wells at Demir-Dagh in the second half of 2015 (at least three of which are expected to be sidetrack wells, being DD-6, DD-8 and DD-11);
  • $4 million for the processing of 3D seismic data acquired in 2014; and
  • $19 million for personnel costs, PSC compliance costs and local office costs.

As at December 31, 2014, Oryx Petroleum had approximately $110 million of cash on hand.  The Group's updated 2015 capital expenditure forecast has been developed on the basis that current cash together with the $100 million credit facility from AOG will fund forecast 2015 capital expenditures and other general and administrative expenses.

AOG Funding Commitment

AOG has committed to provide $100 million  of funding to Oryx Petroleum in the form of an unsecured credit facility in order to ensure Oryx Petroleum has financial flexibility in undertaking its work program for 2015.

A summary of key terms of the credit facility is set out below:

Summary of Key Terms


$100 mm Total Commitment drawable in two $50 million tranches


36 months


Full drawn amount plus accrued interest paid at Maturity (36 Months)


10.5% per annum (interest accrues until Repayment)



Number of


Up to 12.0 million if full commitment drawn

Warrant Exercise


10% premium to 10-day historical volume weighted average price (VWAP)

of Oryx Petroleum shares traded on Toronto Stock Exchange at time of issue

Warrant Duration:

36 months from issue

Oryx Petroleum currently has approximately 121.7 million common shares outstanding on a fully diluted basis.  The pro-forma ownership of AOG and its affiliates in Oryx Petroleum would be expected to increase to 77% from 75% on a fully diluted basis if Oryx Petroleum draws down the full $100 million and if AOG exercises the full 12 million warrants that it is entitled to under the terms of the facility.

Definitive agreements have been executed by Oryx Petroleum and AOG, and the requisite approvals have been received from their respective boards and the relevant security regulatory authorities in Canada. The transaction closed on March 11, 2015.

This unsecured credit facility constitutes a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101").  Oryx Petroleum is relying on sections 5.5(a) and 5.7(a) of MI 61-101, which provides an exemption to the formal valuation requirement and minority approval requirement, respectively, where neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction exceeds 25 per cent of Oryx Petroleum's market capitalization as at the time the transaction is agreed to.

This news release and the related material change report have not been filed at least 21 days before the closing date of the transaction as any delay in finalising the facility from AOG could result in corresponding delays in the implementation of Oryx Petroleum´s 2015 capital expenditure plans.


Oryx Petroleum is an international oil exploration and production company focused in Africa and the Middle East. Oryx Petroleum'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 P.L.C. and key members of the former senior management team of Addax Petroleum Corporation. Oryx Petroleum has interests in seven license areas, two of which have yielded oil discoveries and five of which management of Oryx Petroleum believe are prospective for oil. The Group is the operator or technical partner in five of the seven license areas. Two license areas are located in the Kurdistan Region and the Wasit governorate (province) of Iraq and five 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 business strategies, well drilling and testing plans, development plans and schedules, objectives and chance of success, plans to tie wells into production facilities, plans to complete the early production facility on the Hawler license area and to tie production facilities into the export pipeline, future drilling of new wells, ultimate recoverability of current and long-term assets, expected production rates, future expenditures, forecast capital expenditure, plans for managing available working capital, and statements that contain words such as "may", "will", "could", "should", "aim", "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 Group, refer  to the Group`s annual information form dated March 12, 2014 available at www.sedar.com and the Group`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 Group 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

For further information: 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


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