Testing Achieves Expected Flow Rates and Confirms Reservoir and Fluid Characteristics
CALGARY, March 11, 2014 /CNW/ - Oryx Petroleum Corporation Limited ("Oryx Petroleum" or the "Corporation") today announced the successful testing of the DD-4 appraisal well on the Demir Dagh field in the Hawler license area in the Kurdistan Region of Iraq. Oryx Petroleum 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 pleased with the successful testing of the DD-4 appraisal well, the first appraisal well to complete drilling and testing on the Demir Dagh field. Overall, the results confirm those of the Demir Dagh discovery with good flow rates, similar fluid characteristics and reservoir properties as observed in Demir Dagh-2."
DD-4 Appraisal Well Testing
The Romfor 22 rig spudded the Demir Dagh-4 appraisal well ("DD-4") in late December 2013, and reached total depth of 1,895 metres in the lower Cretaceous in early February 2014. The well was drilled down-dip on the southern flank of the anticline approximately 1.5 km to the south-west of the Demir Dagh-2 discovery well ("DD-2") on the other side of a major fault in order to appraise the flank of the Cretaceous reservoir. The well has been completed as a producing well.
Fluid losses were observed during drilling, four cores were cut and a full suite of logging data was collected. The well data interpretation confirmed the presence of hydrocarbons, a development of matrix porosity and a similar open fracture network as observed in DD-2.
A drill stem test was conducted over a 53 metre interval in the Kometan formation in the upper Cretaceous reservoir. The well was flowed over a total of 67 hours using a series of different choke sizes. The test flowed at a sustained rate of 3,500 bbl/d of oil for a 6 hour period on a 128/64" choke but was constrained by the diameter of the testing string. The oil gravity was measured on site at 21° API. Gas to Oil Ratio ("GOR") measurements ranged from 65 to 115 scf/stb and hydrogen sulphide was measured at 0.25-0.5%. No water production or pressure declines were observed during the test. All field fluid measurements will require laboratory analysis to confirm results and should be considered preliminary until such analysis has been done. The test results are not necessarily indicative of long-term performance or of ultimate recovery.
The DD-4 well has been completed as a producing well with 4.5" tubing which the Corporation expects will enable production rates higher than achieved during testing. DD-4 and DD-2 will contribute to expected first production in the second quarter of 2014.
Ongoing Demir Dagh Appraisal
The Romfor 22 rig has moved and recently spudded the Demir Dagh-5 appraisal well ("DD-5") approximately 3 km to the west of DD-2. DD-5 will be drilled to the Lower Cretaceous and is targeting the saddle area between the Demir Dagh and Banan structures. Drilling and testing are expected to be completed in Q2 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.
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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