First Discovery in West Africa an Important Milestone
CALGARY, Sept. 4, 2013 /CNW/ -
Oryx Petroleum Corporation Limited ("Oryx Petroleum" or the "Corporation") today announced that the E-1 exploration well targeting the Elephant (formerly Xiang) prospect in the Haute Mer A license area in Congo (Brazzaville) discovered natural gas and crude oil. The Elephant discovery will be tested in early 2014 as part of the multi-well drilling and testing program in the Haute Mer A license area. 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 very pleased with the Elephant discovery as it represents an important milestone in the building of our West African business. Overall the results are consistent with expectations. Reservoir quality, crude quality and viscosity appear to be better than originally anticipated while the areal extent of the reservoir appears to be slightly smaller than expected. We look forward to working with our partners to test and potentially appraise the Elephant discovery. Although subject to testing, the discovery gives us confidence that there is further upside potential and opportunity to expand the prospect inventory in the license area."
On August 3, E-1 reached a total depth of 2,497 metres using the Jasper Explorer Drillship in 550 metres of water 80 kilometres offshore Congo (Brazzaville). Following the completion of drilling operations preliminary logging operations were conducted and data collected from the logging operations and throughout drilling were analysed. E-1 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 the preliminary 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. Reservoir quality appears to be very good with porosity ranging from 24% to 36% in the N5 interval and 27% to 33% in the N3 interval. Preliminary analysis of oil samples recovered from the crude oil bearing sands indicates that the crude oil is approximately 18° API gravity. Reservoir quality, crude quality and viscosity are better than pre-drill expectations while the areal extent of the structure appears to be slightly smaller than expected. Reservoir size and immoveable oil with high viscosity and low recoverability are the principal geologic risks associated with the prospect. If preliminary analysis is confirmed during testing, the E-1 well will be considered a successful commercial discovery consistent overall with pre-drill estimates.
Spudding of H-1 Well Targeting the Horse Prospect
The Jasper Explorer Drillship, under contract for a two plus one drilling campaign, has now moved off the Elephant discovery and has spudded the H-1 well targeting the Horse prospect (formerly Ma). H-1 will be drilled to a total depth of 5,462 metres in 1,038 metres of water 80 kilometres offshore Congo (Brazzaville) in the western portion of the license area. Primary targets are the Tertiary N3 reservoir, a turbiditic play, and the deeper Cretaceous reservoir, an Albian age carbonate play. Other wells drilled in adjacent license areas targeting the Albian age cretaceous carbonate play have yielded discoveries by Total at N`Kossa, N`Soko, Moho Bilondo and Moho North and Chevron on Block 0 in Angola. Oil quality is anticipated to be light in the Cretaceous and heavier in the Tertiary. Oryx Petroleum expects the well will reach total depth in late 2013.
Testing Program and Appraisal Plans
If the H-1 well is successful, the Jasper Explorer will first test the H-1 well prior to testing the Elephant discovery. Details of the testing program for the Elephant discovery are currently being finalized together with the operator. Subject to a successful test of the Elephant discovery, the operator intends to drill the first appraisal well in the license area on the Elephant discovery. The appraisal well will likely test the potential outer extension of the discovered N5 sands while also probing similar channel sands in the N5 interval.
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 seven license areas prospective for oil and is the operator or technical partner in four of the seven license areas. Three 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 nature, timing and effect of the Corporation's future capital, business and acquisition strategy and goals, opportunities, reserves and resources estimates and potential, drilling plans, development plans and schedules and chance of success, future seismic activity, 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", "would", "could", "should", "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "propose", "potentially", "project", "forecast" 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, access to local and international markets for future crude oil production, if any and future crude oil prices, 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 Corporation's future production levels, 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, the extent of the Corporation's liabilities, 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.
Reserves and Resource 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.
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. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources.
SOURCE: Oryx Petroleum Corporation Limited
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